theenergyst.com April/May 2019

Power play: Shell More Stor: Energyst Event: Within ive years EV charging will 7 aims to be world’s 34 National Grid 40 If you like the be something you have to o er or biggest generator by uses more DSR but lags magazine, you’ll love 2030 challenges ahead the show, 12 May customers will be unhappy  – p31

our european expansion

Turn to page 12 & 13 to read the full article

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INSIDE THIS ISSUE

16 Renewables Gridserve says its solar-storage deal with Warrington Council is the shape of things to come 18 24 Renewables Local authorities have Electric vehicles the power to drive UPS outlines what it has deep decarbonisation. learned from deploying electric The UK100 network is vans in central London - and helping to coordinate why smart charging could be their approach key to electrifying transport

36 06 News Virtual power Triad dates con irmed, plants Utilitywise’s EIC acquired; next Statkraft plans to shake up the steps for Capacity Market; UK lexibility market and is Innogy on Npower’s future; amassing a potent VPP new CEO at Engie

You’re more likely to win by talking about comfort and saving money than 18 saving the planet Viewpoint

theenergyst.com April/May 2019

Power play: Shell More Stor: Energyst Event: Within ive years EV charging will 7 aims to be world’s 34 National Grid 40 If you like the be something you have to o er or biggest generator by uses more DSR but lags magazine, you’ll love customers will be unhappy  – p31 34 2030 challenges ahead the show, 12 May DSR & Storage 30 our european National Grid used a lot more expansion Turn to page 12 & 13 to read the full article 12 Stor last year, as well as FFR. But Electric vehicles the System Operator’s annual Charging providers suggest Cover Power Responsive report lags businesses that do not install www.greenenergyconsulting.co.uk some challenges coming down charging points risk watching Story the track their customers go elsewhere Green Energy Consulting

News & comment 4 Electric vehicles 24 Lighting 48 Insight 14 DSR & battery storage 34 Smart buildings 52 Renewable energy 16 Energyst Event preview 40 HVAC 54 Gas & electricity 20 Behaviour change 44 Products 56

To subscribe please visit: theenergyst.com/subscribe theenergyst.com April/May 2019 3 COMMENT Interaction can make all the di ference

The Energyst Event is fast approaching and promises often then revised again to remove adverse impacts. to bring a mix of industry thought leaders, end- The volume of consultation, rule changes and user case studies and, importantly, debate. It aims resulting uncertainty makes the energy manager’s to bring you the latest developments in technology, job both more critical and more diffi cult. strategy and policy. Just as The Energyst, incidentally 20 years old this month, aims to cut through the And as climate protests increase in volume and scale, noise with news and analysis of current energy the pressure on companies to demonstrate that they management topics, so too does The Energyst Event. are taking positive action will rightly increase.

However, the point of live events is interaction – The Energyst Event, alongside The Energyst, refl ects and this can be the difference in understanding these challenges and offers solutions. Speakers and crucial subtleties or tailoring advice and exhibitors refl ect the spectrum of industry, both from products to suit your actual circumstances. the supply side and importantly your peers in energy management will detail their successes and struggles The point of live events and share best practice. Get involved to steer the is interaction – and this debate and make the event bespoke to your needs. can be the di erence in The CPD-certifi ed sessions are free to attend, understanding crucial giving you a cost-effective way to continue your subtleties or tailoring advice professional development. The conference programme and products to suit your is ably supported by a second stream run by ICON actual circumstances (Industrial & Commercial Operations Network).

As you will be acutely aware, the energy There are also Masterclasses on energy sector is undergoing profound change. benchmarking and performance indicators by expert Vilnes Vesma Renewable energy has, aside from becoming cost (details at vesma.com/training). effective, opened up the need for fl exibility; and means we need to rethink how and when we use power. So for everything energy, be sure to attend The Energyst Event, Battery storage has also been given a boost from the 1-2 May at the National intermittency of many renewable technologies and Motorcycle Museum, electric vehicles could potentially factor into that Birmingham. Register at equation, posing both challenges and opportunities. theenergystevent.com

In the push to reduce carbon emissions, policy and Tim McManan-Smith, regulations relating to energy are being revised - and Editor

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

4 April/May 2019 theenergyst.com

NEWS & COMMENT National Grid con irms 201819 Triads

National Grid Electricity System Operator has confirmed this winter’s periods of peak demand, known as Triads. Transmission charges for large businesses are based on these periods, the three half hours of highest demand that are at least 10 days apart, between November and February. But the cunning trick is that National Grid only reveals them retrospectively – and failing to hit a Triad can be very expensive. As a result, many firms curb consumption or switch to onsite generation over winter evenings to try and reduce their bills. Fear of missing a Triad results in an estimated 2GW Transmission charges are based on the three half hours of highest demand at least 10 days apart of demand reduction when a peak period is deemed likely. the lowest number of calls. from 17:00-17:30 with downward trend – the lowest That reduction is The winter 2018/19 peak demand at 45MW for about quarter of a century. encouraged by an army of Triads were as follows: • Wednesday 23 January The Triad mechanism consultants, who send Triad • Thursday 22 November 2019 from 17:30-18:00 with looks set to be scrapped as warnings to their clients, 2018 from 17:00-17:30 with peak demand at 46.9MW part of Ofgem’s charging aiming for the coveted prize peak demand at 45.3MW review, but will likely remain of guessing the three peaks in • Monday 10 December 2018 The three peaks continue a in place for a few years yet. Government details next steps for summer Capacity Market auction

The government has detailed that the European Commission power system, government is not received by that point. its plans for a T-1 Capacity had not followed due said it would run the auction Those with conditional Market auction for delivery procedure and that the market at a later date and consulted agreements must deliver their over the coming winter. design discriminated against with market participants obligations and penalties will It aims to hold an auction by demand-side response. on its approach. apply to those that do not, or August at the latest, and has That ruling came just as In its consultation response, fail to hit delivery milestones. outlined how agreements will power providers had pre- Beis said it plans to issue Beis said it intends to allow be awarded and honoured – qualified for a ‘conditional capacity agreements’ secondary trading of conditional subject to state aid approval. year ahead, or to winning bidders, as state aid agreements after the auction. The Capacity Market is T-1 auction that approval is unlikely to be granted It will waive credit cover suspended following a ruling was due to be at the time of the auction. requirements, though will by the European Court of held in January The department said it introduce termination fees if Justice that found in favour 2019 for delivery anticipates approval will be non-proven DSR over 2MW does of Tempus Energy, next winter. To received ahead of the start of the not provide a test certificate. which took the ensure delivery year, ie by November. However, because lead times government sufficient However, it will make provisions will be shorter, Beis plans to to court, headroom to make back-payments to make changes to rules around arguing on the successful bidders if approval tests for DSR providers.

6 April/May 2019 theenergyst.com System operator says it can go 100% renewables by 2025

National Grid ESO believes handled to model the system. • Improve forecasting of it will be able to operate the The ESO said: “We need wind and solar, along with power system with 100% to fundamentally change embedded generation renewable power – for periods how we plan, analyse and • Develop the ability to at least – by 2025. But it says operate the electricity monitor and measure it will need to “fundamentally We need to system and innovate in the inertia and new network change” the way it operates. fundamentally development and deployment analysis tools that allow it “Operating a zero-carbon change how we of new technologies, to be modelled and different electricity system in 2025, products and services.” operating scenarios assessed whenever there is sufficient plan, analyse The development in real time renewable generation, is and operate the timeline includes plans to: a major stepping stone to electricity system • Be able to use wind and The ESO said that although full decarbonisation of the solar to provide reserve and this would be a step-change entire electricity system; and innovate response services by 2020 in grid operation “we know, enabling new technologies Fintan Slye, • Increase deployment of through approaches that and removing barriers National storage and its use in we have had to date, that to ever increasing levels Grid ESO frequency markets there are customers with of renewables,” said ESO • Define new the right technologies that director Fintan Slye. ancillary services can provide these services. In order to achieve that goal, that deliver the Therefore, once we have the system operator has to roll inertia currently identified and described out new ways of managing provide by rotating the technical requirements system characteristics like fossil plant, so that of the network it should be inertia and voltage across the new markets for these possible to create the right system. That means in some services can be developed products and market place.” cases developing new markets, and put in place by 2022 for system products that have • Investigate existing and A version of this story first not yet been designed, and it new technologies that can published in our sister requires far more data to be provide voltage support publication, New Power

‘We’ll use a lot more gas Shell ‘will be world’s biggest before we use less’ power company’ “Natural gas is absolutely crucial and we are going to use Shell believes it can be sees greatest margin from more of it before we use less,” according to Centrica CEO the world’s biggest power domestic retail – selling not Iain Conn. Speaking at Aurora’s Spring Forum, Conn suggested company by the early just power but solar, storage using hydrogen for heating is “unlikely to be practical”. He 2030s – driven largely by and smart home and electric said British Gas, instead of installing boilers in homes, will renewables and gas. It thinks vehicle management, nodding ultimately install heat pumps, “and be in business long after electrification will grow to recent deals for Sonnen natural gas [use] disappears”. However, he added, “it will be rapidly and eyes double-digit and others as enablers. quite a long time before we get to that point”. returns from smart trading However, generation is Aurora’s John Feddersen launched the conference by citing and management of flexibility. also important, as Shell a need to build out 400 600GW of renewable energy globally In an interview with does not believes consumers per annum for the next 30 years to meet increasing demand, Bloomberg TV, Maarten will want to buy clean including electriication of transport, and climate goals. That Wetselaar, Integrated Gas & energy from those that broadly equates to a Hornsea One ofshore wind farm coming New Energies director, said the do not generate it. on stream stream every day from now until 2050. company is interested not in While Shell has stepped Asked if that could be achieved, Conn said distributed legacy power sector business up its investment in clean generation in combination with centralised renewables or economics, but “what we see technologies in recent projects may be able to deliver. But he suggested that the headline generation igure could irst be signiicantly in next 20 years – intermittent years, it will move rapidly reduced by better energy eiciency and use of lexibility. demand and supply”. to scale once its strategy is He implied that Shell proven, said Wetselaar. theenergyst.com April/May 2019 7 NEWS & COMMENT

Eon’s Johannes Teyssen: ‘The grid, not generation, will crack decarbonisation’ Eon chief executive Johannes unknowns’ if there are so many executive offi cer at the Teyssen says the energy sector areas we can tackle fi rst?” Australian Energy Market must change the narrative on asked Teyssen, suggesting Operator (AEMO), seconded climate change, minimise costs that power grid utilisation that view. She said unexploited of decarbonisation and start is the best place to start. assets could be better utilised working on today’s challenges Why focus on “Most of the solution to managed “deep bellied instead of trying to design ‘unknown is in the grid,” he said, ducks” (the curve between perfect long-term solutions. “not generation.” peak demand and available Much of the heavy lifting, unknowns’ if Electrifying transport, renewable resource – so called he suggested, can be done there are Teyssen thinks, could because it looks like a duck). by better use of existing so many deliver wins for the “There are solutions; you power grid infrastructure. areas power system and for can make demand a primary Speaking at Aurora’s Spring consumers: cars can resource to follow generation Forum, Teyssen warned that we can remove excess power as opposed to generation negative public perception of tackle from the system when following demand,” she climate stabilisation measures irst? required and enable said. “So maximise what we could spark civil unrest if Johannes a greater number of have … Then look at what people are not engaged and units of electricity to be used we need going forward.” costs run unchecked. Teyssen, Eon within existing infrastructure, Irene Rummelhoff, executive “People want subsidies driving down unit costs. vice president, Marketing, for this, for that. But the fl exibility may be required Teyssen believes the need Midstream & Processing at state is [the wallet of] under a net zero scenario. for 60TWh seasonal storage Norway’s Equinor (formerly the private person. We Teyssen acknowledged the is “about two decades out”. Statoil), disagreed. need to respect that.” scale of the challenge but urged “We can look at that and use “It does take time to solve The conference earlier sharper resolve on making it as a scapegoat, or focus on long term issues – and it is the highlighted Aurora projections immediate progress than the problems of the coming responsibility of companies that in the UK alone 60TWh perfecting long-term solutions. decade and start today.” like ourselves to spend some of seasonal storage and/or “Why focus on ‘unknown Audrey Zibelman, chief time solving them,” she said. Innogy inance chief: winding down Npower an option

All options are on the table for Npower, we have lost so many customers. In retail, “We do not exclude any option. Of course including winding down the business. B2C at least, a signi icant part is cost-driven,” the strategic option … selling the customer During an analyst call, Innogy chief inance he said. “The larger the customer base, the book and winding down the operation of o icer Bernhard Günther said Innogy [greater the contribution to] covering ixed the business is one of the various options expected a negative Ebit contribution costs. and the wind down scenario would include from UK retail of about €250m in 2019 and “Our ixed cost base is relatively similar some signi icant costs,” said Günther. perhaps €150m in 2020. to [the other Big Six competitors]. But we Whether those costs are considered “Based on the current market situation, [now] have around 4 million customers. Eon “prohibitive … is in the eye of the we don’t give any guidance on when this has 7 million, Centrica has about 10 million. beholder”, Günther suggested. He said business on a standalone basis will turn We just lack the critical mass to be on an the cost of closure would be taken into positive,” he said, adding that “irrational equal level of pro itability as they are. It is a account in when weighing up other pricing behaviour” from other energy typical ixed cost dilemma that we are in.” options for Npower, but added that retailers hampers forecasting. Günther declined to quantify the making assumptions about how much a “We observed towards the end of 2018 number of roles that would be required at prospective buyer might be prepared to pay that some are o fering [tari fs] at negative a combined Eon-Npower retail for Npower’s customers was a “very volatile gross margins and gaining customers by entity, should that eventuate. ‘unknown unknown’”. doing so. We always said we would not try Should Innogy decide to Asked to make a comparison with to buy customers at a loss.” As such, the close Npower, the “all-in” cost the sale of 770,000 customers to Utility company expects more customer losses, would be “signi icant” triple- Warehouse for £216m in 2013, at around which will create further drag. digit millions of pounds, said £300 per customer, Günther suggested Asked why Npower has performed Günther. those days were long gone. consistently badly compared with the rest “We would be happy to consider of the Big Six in recent years, Günther was Günther: ‘We do not any o fer based on those frank: “Because on our way to restructuring, exclude any option’ multiples,” he said.

8 April/May 2019 theenergyst.com to deliver industry-leading Honda to electrify models and innovation by launching energy services…to create move into energy management additional value for power system operators and EV Honda has announced plans services. It is likely that other customers alike,” said Tom to ensure its entire range carmakers will follow suit. Gardner, senior vice-president, of European models are Honda will work with Moixa Honda Motor Europe. electrified by 2025, though on smart charging and vehicle Moixa founder and chief that includes hybrids. to grid services. The company’s executive Simon Daniel said: It also plans to launch an Gridshare platform aggregates “We are delighted to support energy management company. lots of small loads, such as Honda’s ambitious plans for The carmaker has struck home energy storage systems total electrification of new car agreements with charging and EV batteries. Moixa claims sales in Europe. Our technology companies and smart grid its technology uses artificial will be able to manage millions platforms in a bid to unlock intelligence to learn consumption of EV batteries, maximising smart charging and vehicle-to- patterns and optimise batteries. savings for customers and grid opportunities, where cars Honda is moving into the The company, which counts using spare capacity to support can essentially be aggregated energy business Tepco as an investor, last year a low-carbon electricity grid.” into virtual power plants. signed a strategic partnership Chief technology officer Announced at the Geneva announced the launch of its own with Itochu Corporation to take Chris Wright added: “Moixa’s Motor Show, the move is energy company, Elli. The world’s its Gridshare platform to Japan. GridShare software ensures another significant indication largest carmaker, which has Honda has also struck a cars are charged in the most of the convergence of energy committed to invest ¤30bn on partnership with Ubitricity, cost-effective way to save and transport. It serves as EVs over the next five years, said a charging firm that has money, it can use their batteries another warning to traditional energy supply was “strategically developed technology enabling to power a home when energy utilities that the game is relevant” to its business. chargers to be installed more costs are high, and it can rapidly changing: Honda is Nissan is also considering easily on streets – such as aggregate spare capacity in a not the only carmaker getting launching an energy on walls or lamp posts. virtual power plant to provide into the energy business. company and is bullish on the “This is a significant move a range of services that help In January, Volkswagen prospects of vehicle to grid for Honda, our intention is balance supply and demand.” NEWS & COMMENT

£100m tab for failed energy suppliers

Energy suppliers may face fund at the end of the year. It was £58.6m light for the That will add further pressure another big Renewables The problem is, many of 2017-18 period, leading Ofgem to smaller suppliers already Obligation bill after a the 14 small suppliers that last November to announce struggling with cashflow issues, spate of market exits. have gone bust since the it was tightening rules for rising prices and tougher Cornwall Insight forecasts new market entrants. terms imposed by traders in a potential shortfall in the Within days, several more the wake of market failures. RO Buyout Fund of up to firms that owed millions Meanwhile, renewable £43.8m for 2018-19. in Renewables Obligation generators that qualify for Under the Renewables £43.8m payments had ceased trading. Renewables Obligation Obligation, energy suppliers are Potential shortfall forecast in Solvent suppliers picked up payments will have to wait obliged to buy a certain amount this year’s RO Buyout Fund that tab. Should Cornwall’s many months longer to get of power from renewable estimates prove correct, it will paid the full amount they are sources. If they do not, they mean customers end up paying due, said Cornwall Insight pay into a buyout fund. start of last year spent the around £100m in total through team lead Tim Dixon. The cost of the Renewables Renewables Obligation money. their energy bills, effectively Dixon urged policymakers Obligation is added to The resulting shortfall is subsidising the unsustainable to think about collecting the customer bill and the mutualised – or smeared – prices with which the failed payments more regularly suppliers then pay into the across all other suppliers. suppliers gained customers. to avoid repeat episodes. Northumbrian Water signs Nicola Lovett promoted to o fshore wind PPA with Ørsted Engie CEO

Northumbrian Water has Nicola Lovett has been signed what is believed to Ørsted has a appointed CEO of Engie’s be the UK’s first corporate stake in nine UK UK & Ireland business as of power purchase agreement o fshore wind 1 May. Current CEO Wilfrid (PPA) for offshore wind. farms Petrie will join the group’s It will take about 100GWh executive committee in Paris per year from Ørsted’s 573MW and lead development of Race Bank wind farm, its French B2B business. located off the Norfolk coast. Lovett joined the firm in The deal is for 10 years. 2013. She was most recently PPAs are starting to become divisional CEO for Business a more common way for large Energy and Services. She said companies to buy power: she was “delighted” to take on they agree to pay a fixed rate commercial director. (Barrow, Burbo Bank, Burbo the top job. “We have a clearly over number of years, giving “The long-term stability Bank Extension, Gunfleet defined strategy in integrated themselves price certainty this brings is fantastic for Sands, Lincs, London Array, client solutions and flexible and and mitigating market risk. us, and great news for our Walney, West of Duddon Sands renewable energy, delivering In a post-subsidy environment, customers and stakeholders, and Westermost Rough). outcomes for both business and PPAs will become an increasingly because it reduces It also has another four local authority customers that important mechanism for operational costs without projects under construction enable them to balance their developers to finance renewable compromising our work.” (Hornsea One, Hornsea performance with responsibility,” energy projects, though Alana Kühne, head of Two, Race Bank and Walney said Lovett. “I look forward offshore wind may need corporate PPAs at Ørsted, Extension), which would take to helping our customers in support for some time yet. said the deal “is an important its offshore interests to 4.9GW, the transition towards a more “This PPA is not only a first step towards building long- plus two in development decentralised, increasingly of its kind in the UK; more term green partnerships with (Hornsea Three and Isle of digitised, zero carbon economy.” importantly it aligns perfectly corporate power customers”. Man), which, if built, would Wilfrid Petrie said Lovett is a with our sustainability goals and Northumbrian Water signed result in an 8GW UK portfolio. “strong leader” with the requisite our ambitions of creating a truly a four-year energy supply The company, part-owned “experience and qualities” cohesive energy management contract with Ørsted last year. by the Danish state, plans to steer the organisation. strategy,” said Graham Southall, Ørsted owns or has a stake in to build 15GW of offshore He said his own tenure had Northumbrian Water’s group nine UK offshore wind farms wind capacity by 2025. been “a great pleasure.”

10 April/May 2019 theenergyst.com Sponsored column Don’t get complacent Good Energy pushes about falling harder into b2b market commodity costs

Good Energy believes its and electric vehicles in 2019, growth will increasingly come following its framework By Amy Bolton, Supplier from the business market, agreements with Belectric Relationship Team with energy services the and Powerstar and recent Manager at Inenco future of its business model. investment in Zap-Map. Posting unaudited full year The company hopes to As 2018 marked the tenth 2018 results, the company deliver fully funded, behind- successive year of rising said overall business customer the-meter storage solutions business energy costs, energy numbers grew by 4.6% to business customers. managers are understandably to 122,210, though most Meanwhile, it hopes to create focused on mitigating the of these – 115,773 – are a peer-to-peer or ‘energy effects on their energy bills. Feed-in-Tariff customers. sharing’ model for domestic In today’s volatile market, However, SME business customers, which combines creating the optimum energy supply customer aspects such as rooftop PV, procurement strategy is a vital numbers increased by smart energy management element in achieving this. Savvy energy 39.8% to 6,347. Domestic and electric vehicles. Last year, many businesses managers will customers fell by 3.4%. “Your home can become a saw energy bills increase be focusing Good Energy plans to begin miniature power station, with as wholesale energy prices “ its smart meter rollout this the right equipment in place,” rose significantly, driven by on their energy year, using Smets2 meters and said CEO Juliet Davenport. European gas demand, rising management eschewing in-home displays On revenues of £116.9m, carbon prices and bullish strategy to for apps on customer’s phones. Good Energy posted a profit oil markets. Since February, The company said it would of £865,000 compared with however, we’ve seen wholesale mitigate spiralling also invest battery storage a £2.7m loss in 2017. costs fall due to a mild winter non-commodity and a healthy supply of costs gas – but that doesn’t mean businesses can get complacent. Monarch Partnership While commodity prices energy management strategy have fallen so far in 2019, non- to mitigate spiralling non- commodity costs continue to acquires Utilitywise’s EIC commodity costs, which rise. The end of the Carbon now make up around 60% Reduction Commitment (CRC) of business energy bills. But The Monarch Partnership Partnership, said the aim is scheme at the beginning of has acquired Energy to build “a premier utility April has increased the Climate taking the optimum approach Intelligence Centre (EIC) consultancy focused on Change Levy (CCL) by 45% to energy procurement is also and T-Mac Technologies helping our customers to for electricity and 67% for key, as if we see wholesale for an undisclosed sum. become fully sustainable gas, for example, which will costs rise again then businesses The deal follows the collapse energy users”. have a significant impact on will once again face pressure of third party intermediary He added that the company businesses that aren’t exempt on both sides of their bill. Utilitywise, with the sale is now working to integrate from the CCL. And while the Creating an energy buying brokered by administrators the businesses, though they Capacity Market (CM) has been strategy isn’t easy – businesses FTI Consulting. EIC was will retain seperate brand suspended, payments will be need to take into account Utilitywise’s corporate arm, identities and offices. their appetite for risk, in-house handling larger businesses, • Latest Companies House backdated when the market capability and resources, as while energy software filings show Utilitywise is restored. Businesses need well as their budget. If your and smart buildings firm racked up £94m in debt. to be prepared for this, as the contract is up for renewal, T-Mac was acquired by It collapsed owing Total levy is expected to be around Inenco’s procurement experts the group in 2015. Gas & Power £5m, of £100MWh this year – a huge In a statement, the company which £3m was advanced increase from winter 2017/18, can help you to find a solution said all 130 staff from EIC and commissions. The list of when it was around £40/MWh. that’s right for your business – T-Mac will join The Monarch corporate creditors suggests Savvy energy managers to find out more, visit Partnership, creating a firm Engie and SSE are also will be focusing on their www.inenco.com/experts. with 250 employees and substantially out of pocket, combined revenues of £20m. with several other energy Peter Dosanjh, chairman suppliers featuring in a long and CEO at The Monarch list of those owed money. thetheenergyst.energyst.comcom Sponsored Cover Story GREEN ENERGY CONSULTING: EUROPEAN EXPANSION An introduction to Green Energy Consulting

reen Energy Consulting is We understand the dynamics of a well-established, leading operating within the energy market - we consultancy specialising in are completely independent and always renewableG energy and sustainability. look to add value to our clients from The company was established in SME to Corporate level. GEC conducts 2012 by our two directors in one of a fully managed tender process for all Gateshead’s redeveloped railway clients - ensuring the best contract arches. Since then we have grown terms. Our bespoke system encourages to 100 members of experienced staff buy-in from all suppliers, which in turn and manage over 3.1 TWh for the results in an extremely competitive thousands of clients in our portfolio. tendering process through which our Due to our vision and drive, we are clients can save time, energy and confident that our services make a money. real difference to the environment and We have relationships with across our clients. We assist our clients with the supplier market, from the Big Six, “WE PRIDE all issues from energy management through to independent, regional and to consumption reduction strategies. renewable suppliers - which helps us OURSELVES ON We pay attention to the ever-changing to get the best deal for each client. Due utilities market and introduce measures to the buying power of our portfolio, we THE HOLISTIC that will help tackle the challenges the can offer 100% renewable electricity industry is facing. and carbon neutral gas to our clients. SERVICE WE OFFER We pride ourselves on the holistic Our energy experts carry our regular service we offer to our clients - going market analyses to identify changes TO OUR CLIENTS – above and beyond simple procurement in the industry that may affect our to offer a turnkey solution to energy clients. We have worked with over 100 GOING ABOVE AND management. companies to facilitate their compliance with the ESOS scheme and identify BEYOND SIMPLE Our work throughout the UK behavioral changes and technological Our consultancy service allows our solutions to help reduce their energy PROCUREMENT clients to adopt the most sustainable consumption and enhance sustainability approach to consuming energy, as performance. TO OFFER A such, improving their green credentials enabling them to deliver against brand European Expansion TURNKEY SOLUTION values, without the added cost. We Through continuous examination of work with a vast range of clients, the market, we endeavor to come TO ENERGY across various industries including, for up with new ways for organisations, example; Kurt Geiger, Spud u Like, Sixt in any area, to benefit from services MANAGEMENT” and L’Occitane. that have beneficial influences on the number of energy suppliers – reducing the complexity of billing in the portfolio – while taking advantage of economies of scale. A single point of contact for GREEN ENERGY sustainability ensures that we can provide reporting on consumption on a European level and provides the opportunity for clients to implement group wide sustainability practices.

CONSULTING: Our future plans Given our success in the United Kingdom, and our early work with some of our multinational clients in Europe, we see this as being a key part of the organisation moving forwards. We are EUROPEAN looking to bolster the European function within the coming months to provide coverage across the entirety of the region – taking advantage of existing supplier relationships and building our new relationships to provide a wide EXPANSION panel for future procurement activities. Although we have conducted work with some of our multinational clients in Europe already, we continue to add to our existing client portfolio by taking on new opportunities across France, Spain, and Germany. We have expanded our in-house energy management platform Energetics to deal with region specific data, and will be offering clients a solution that provides group wide usage coverage. We continue to rise from strength to strength as we always look to develop new consumption reduction strategies, that are simple, unique and at a minimal cost to the environment. Our forward and innovative thinking is just a small part of what makes us stand out in the energy sector.

environment - this is why we have site to identify opportunities of energy If you’d like to speak to taken the opportunity to expand into savings. The new European function the European Union. will follow the same methodology, and our experts on any energy To provide clients with the same will offer clients the ability to access a management services, level of service in Europe that we do level of service often taken for granted please contact 0191 300 6161 in the United Kingdom, we chose to in the United Kingdom. The staff have build a team of experienced European years of experience throughout Europe or email us at Energy Consultants. We are initially providing large multinational clients [email protected] launching in France, Spain, Germany, with an extremely high level of service, The Netherlands and Italy during intelligent purchasing, and costed the initial months of the projects, opportunities for reducing energy with plans to provide full European consumption. coverage in the coming months. Our existing service to clients is Integrated procurement across based upon having highly skilled UK & Europe Energy Consultants and Account An advantage of having an integrated Managers provide an efficient and procurement strategy throughout the effective solution that fits with a United Kingdom and Europe is that is clients’ expectations and needs – allows for a more efficient procurement, allowing them to save more than account management, and just money. By having access to sustainability service. Our wide market customer consumption information, coverage in Europe combined with our Sustainability Consultants can our full market coverage in the United conduct desktop audits of energy Kingdom ensures that we can provide consumption against equipment on the opportunity to streamline the INSIGHT

mbalance prices turned negative for 13 consecutive settlement periods on ISunday 24 March, as low electricity demand and high levels of wind output led the system operator to reduce generation output from a variety of wind, combined cycle gas turbines (CCGT) and biomass power stations. The imbalance price dropped below zero in period 21 (starting at 10am) and remained negative for 13 periods until period 33 (up to 4.30pm), with the price falling as low as -£70.24/MWh in periods 28 and 29 (see Figure 1).

What happened? The fact that many wind farms are located in Scotland exacerbated the requirement to turn down output in certain locations, as there is not enough capacity to transport all the electricity to southern England, where electricity demand is highest – known as ‘constraints’ in grid terminology. As shown in Figure 2, the majority of the capacity turned down by National Grid was from wind farms, but with When the wind blows: some biomass and CGGT plant also reducing output. Wind farms and biomass in particular will be in receipt of subsidy Negative pricing payments, and therefore require a payment to decrease output. Cornwall Insight team lead Tim Dixon explains negative pricing, an With many of these actions increasing phenomenon as renewables penetration increases, and taken to manage constraint issues in Scotland, rather than what it means for renewable generation economics because there was simply too much generation, much of the shows the volume of electricity output that was that National Grid accepted turned down in the BM to turn up (known needed to be offset as accepted offers), and the by increasing volume of electricity National the output of Grid turned down (known as other plants. accepted bids), by technology. This can also be The accepted bid volumes seen in Figure 2, were signifi cantly greater than with National the accepted offer volumes, Grid turning up indicating there was too much CGGT plant at generation on the system the same time and ultimately resulting in as wind farms negatively priced actions being were being asked accepted to balance the system. Tim to turn down. In addition, the way the Figure 1: Net Imbalance Volume (NIV), System Price and Market Dixon Figure 2 imbalance price is calculated Index Price (MIP), 24 March

14 April/May 2019 theenergyst.com changed in November 2018. has made it easier for the Under the new arrangements, SIP to outturn below zero. the Single Imbalance Price However, negative pricing (SIP) for each settlement period events have not yet had a is effectively calculated using significant impact on the the costliest 1MWh of actions wholesale power market. that National Grid takes to While there have been some balance the system. This is the occurrences on the within-day Price Average Reference (PAR) wholesale market, day-ahead volume, which changed from auction prices have never fallen 50MWh (PAR 50) to 1MWh below zero, with the lowest (PAR 1) last November. being £1.57/MWh for a single Under the new methodology, one-hour block, which occurred it is more likely that imbalance in 2017. But events on 24 March prices will outturn negative, do highlight the increasing with the potential that impact of price cannibalisation only one negatively priced – the depressive effect that high action on the BM will result levels of intermittent renewables in a SIP below zero. output have on the wholesale power price – which can Who got paid what? significantly reduce revenues The average accepted bid for renewable generators. price (the price to turn down Our analysis expects a rising generation) from wind farms number of negative wholesale was -£75.9/MWh, with Walney price occurrences in the future, offshore farm – which is as intermittent renewables accredited to the Renewables capacity rises. This is shown Obligation (RO) – receiving in Figure 3, which shows that the lowest price of -£188.9/ by 2034 14% of half-hourly MWh. Biomass power stations, settlement periods could outturn most notably Drax, which negative at negative prices. also receives RO payments, The cannibalisation effect had an average accepted will have a significant impact bid price of -£61.2/MWh. on the business case for new For the majority of build renewables, as projections negatively priced periods, it that this phenomenon will was either Drax’s biomass increase have lowered projected units or onshore wind farms revenues for merchant plant setting the imbalance price, and hindered the ability for with CCGT and hydro plant offtakers to offer investible occasionally setting the price. floor prices in long-term Conversely, the average Power Purchase Agreements. accepted offer price (the price The impacts are not limited Figure 2: Accepted bid-o fer volumes in the BM by technology, to increase output) from CCGT to subsidy-free renewables 24 March plant was £62.3/MWh, the reliant on the wholesale price, highest of which came from but also to RO stations that are Pembroke at £621.0/MWh. also exposed to wholesale prices. During the day, accepted offers Furthermore, while Contracts for were rarely used to set the Difference (CfD) generators are imbalance price as the volume largely protected against price of bid actions outweighed cannibalisation, any generators the volume of offer actions. from Allocation Round 2 and onwards will not receive their The wider impacts of subsidy payments if day-ahead negative prices auction prices turn negative for While negative pricing in the six consecutive hours or more. BM is not a new phenomenon, it Negative pricing, both is a trend that is on an increasing in the BM and on the trajectory, as more intermittent wholesale market, is a trend renewables are added to the to watch out for as more Figure 3: Annual frequency of <=£0/MWh & >=£150/MWh wholesale system and changes to the intermittent renewables price periods through to 2034 imbalance price calculation capacity comes online. te

theenergyst.com April/May 2019 15 RENEWABLE ENERGY

arrington Borough Council has signed a W huge solar plus battery storage deal, enabling it to generate all of its electricity and make millions of pounds a year in profit. Both the council and Gridserve, the company behind the project, believe it creates a blueprint for other local authorities to follow. Warrington will pay £62.3m for two solar farms totalling 60.4MW plus 27MW battery storage. The battery will be co- located with a 34.7MWp solar farm at York. Construction work will commence ‘imminently’, according to Gridserve. A second 25.7MWp solar farm at Hull is due to follow, with plans to add a battery at a later date.

Blueprint The council will take ownership of the projects once completed. By supplying or ‘sleeving in’ its own power, Warrington will lock in prices Making unsubsidised and cut its bills by about £2m a year. It expects to make £150m in surplus from the solar farms over 30 years, solar stack up which will be fed back into frontline services. Gridserve, A massive solar and storage deal promises to lock in renewable founded by former CEO power for Warrington Borough Council, cut bills by £2m per and co-founder of Belectric Toddington Harper, will annum and generate £150m for frontline services over 30 years. continue to operate the assets. Brendan Coyne reports The leader of Warrington Borough Council, Cllr Russ Bowden, says local authorities sustainable and delivers That means “no more have a pivotal role to play in multiple wins for everybody”. scrabbling in mid-winter mud, decarbonising the economy. racing to finish projects” to He urged other councils to No subsidy, no limits hit a subsidy-driven deadline. emulate the “working model” Since selling Belectric, Crucially, he says, it requires its projects have created, Harper has been working “much greater intelligence” deemed by the Association to make unsubsidised around how the power is used. for Public Service Excellence solar viable. He thinks the “In the subsidy (APSE) as ‘prudent, Warrington deal represents environment, projects were commercially viable and of a watershed moment. designed around those high investment grade’. “Previously, everything Local authorities have a subsidies. There was not a Gridserve’s Harper says was driven by a subsidy, a pivotal role to play in de- great amount of attention it was “very likely” more pot, a target. All of a sudden carbonising the economy about the energy itself once councils will follow suit. we don’t have any of that, and are urged to emulate it went into the grid.” He believes the subsidy- we are limited merely by the That led to imbalances the ‘working model’ free model is “genuinely extent of our ambition.” and inefficiencies, which

16 April/May 2019 theenergyst.com Toddington Harper believes the load further, and the subsidy-free model is potentially export more at ‘genuinely sustainable and peak times, or whenever delivers multiple wins for the system needs it most. everybody’ Grid services and tracking technology. The import-export connection Bifacial panels generate means Warrington can energy on both sides – from also draw power from the ambient light on the back, grid – for example, when from daylight on the front. there is too much wind, Trackers rotate the PV or too little demand on panels from east to west, the transmission system smoothing out generation (demand-turn up), a growing curves throughout the day. challenge for National Grid. That is important in a “Batteries can provide any world where income is grid services – frequency, market-driven, says Harper. reactive power, Black Start, “Subsidy-type solar a whole combination of farms, designed for index- things,” says Harper. linked returns rather than “But even without securing grid impact, will typically contracts from National Grid, have panels facing south or ultimately distribution and typically achieve system operators (DSOs), highest output around you can just time shift when noon,” says Harper. it makes sense. That is why “Without subsidy, in a we are called Gridserve. We system driven by supply aim to help the grid – and and demand, exporting that is what we mean by power to the grid when ‘sustainable’ energy above everybody else is exporting ‘renewable’ energy.” means prices will fall – Harper says Gridserve and that’s not particularly has been conservative in its helpful to the system. modelling for York and Hull “So the trackers and and could ultimately end the bifacials enable us to up making money for the generate a little more power council in many more ways. and generate it more evenly “We have actually put a throughout the day. There lot of potential revenue lines is still a curve but it is much at zero. That way, when flatter, and it generates we over deliver, everybody additional [financial] benefit is happy. But anything is as well as benefit to the grid.” possible. We can do much Adding a battery enables more with these projects Warrington to spread than we are forecasting.” te require further actions and payment to correct. “That’s not particularly Solar+storage+EV forecourts clever,” says Harper. “If we are Gridserve has also unveiled plans to build 100 electric vehicle (EV) charging forecourts, with 80 going to have an infrastructure sites in various stages of planning. The aim is to build 20 forecourts within the next two years based primarily on renewable and more than 100 within ive – each with retail, services and restaurants – and EV showrooms or energy, you have to make ‘experience hubs’, says Gridserve’s Toddington Harper. projects part of the solution.” Where possible, the irm will deploy megawatts of solar and storage at each site – as it is doing in York and Hull with Warrington Council. Smarter systems Harper says the forecourts will have optimised queuing systems to avoid charge rage: “You Without subsidies, solutions don’t want to get that wrong.” must also be more efficient to There will be up to 12 super chargers “capable of 500kW per charger” as well as up to 12 wring out maximum value. At spaces for leet and commercial vehicles per site. With a “well-organised queuing system”, the company’s modelling suggests drivers will typically be waiting “for a few minutes, which is Warrington, Gridserve thinks acceptable”, Harper says. it will deliver 20% more power by combining bifacial panels theenergyst.com April/May 2019 17 RENEWABLE ENERGY Local authorities seizing power Members of the UK100 network of local authorities have pledged to convert to using 100% green energy by 2050. Janet Wood spoke to the network’s director, Polly Billington, about taking a local approach to energy

K100 came out members, the network has of the Paris grown to 94, about a fi fth agreement in 2014, of UK local authorities. U explains director “The more connections you Polly Billington. A large make between people who are number of companies made elected to make these decisions, a commitment to 100% the more you can increase clean energy at the time not only their ambition but but she says: “I have been also their ability to deliver,” around enough campaigning says Billington. Local leaders to understand that if you are better placed to do some are not careful a political of these diffi cult things commitment like that can because “they are committed get put in a bottom drawer to their communities, they and nothing happens.” have good relationships She sourced funding with local business and for a network of UK they are very connected”. local authorities, who Climate change is a huge would replicate the Paris motivator for some people, Agreement’s C40 network she explains, but for others of ‘megacities’ committed to it comes alongside other addressing climate change. practicalities, like deep From the retrofi tting social housing, or original 66 understanding and engaging UK100 with the energy sector. “Those things are the bread and butter of local authorities and although these are not particularly sexy, they are also things that deliver co-benefi ts that local leaders can talk about. You are more likely to win on your deep

Polly Billington

18 April/May 2019 theenergyst.com retrofit if you are talking about with Ofgem and the DNOs on the cost, or finding London is leading the way saving people money and is so challenging for local cheaper capital”, she says with its Ultra Low Emission creating warm and healthy authorities. There are Zone but ‘there is a long homes, than you are if you significant barriers to What can be done? way to go’, says Billington talk about saving the planet.” [authorities] doing what There are pathfinder projects: is really necessary.” Swindon initially set up a Enable or regulate? Her ideal approach would solar farm and now it is doing How can local authorities be comprehensive: generating solar with storage. “They are best engage with the energy power, facilitating storage, able to do it because they set industry? Billington says creating the environment up a wholly-owned arms- UK100 sees a high level of for smart EV infrastructure, length company, so they can ambition among its members having high levels of energy effectively de-risk it for the but “there is a long way efficient homes and generating private sector and sell it on,” to go for local leaders in electricity to be able to cross- says Billington. Plymouth has understanding the rapidly subsidise retrofits. Supply can a similar approach, whereas changing energy landscape and lead that and “some of the for some local authorities how they can formally engage most interesting things that owning it would be an intrinsic with it”. Regulatory structures Nottingham is doing might part of what they do. UK100 at the moment don’t favour be related to Robin Hood is “pretty agnostic on that. the rapid decarbonisation Energy but include community We aren’t going to dictate of energy and heat and energy, retrofits on the an ownership model.” transport required, she says. Energisprong model and other The important thing about funding that has supported Next steps local leaders is that “they have solar panels and storage on What’s the next step for levers across all their vectors” social housing. So they are UK100? Billington says

You are more likely to win on your deep retro it if you are talking about saving people money and creating warm and healthy homes, than you are if you talk about saving the planet

in delivering local services, trying a whole lot of ways of a key issue is connecting she says, so, even if they don’t transforming a city,” she says. local authorities with have control over transport, Generally, electricity businesses that can help they still have control over generation locally is solve their problems, and planning – where and how difficult and that puts local with financiers. The plan is to you put car charging points authorities off, she says. First, launch a sustainable finance in. On heat they have levers “they are not instinctively All Party Parliamentary in the social housing and the entrepreneurial”, and second, Group in order to link local private rented sector, and they are in a Catch 22: leaders to policymakers and “you have planning regulatory authorities borrow money at parliamentarians. But she powers to say you can’t build a low interest rate from the thinks her ‘crack team’ and houses unless they meet Public Works Loan Board connecting it to the rising high energy standards”. (PWLB), but that body will not energy hubs “will send a very Local authorities have lend to “interesting” projects strong signal that government become energy suppliers and supported by the sustainability wants this to happen and that many “are still attracted to team – those with higher risk. will reassure local leaders. following the lead of Bristol “The finance team pushes We need to transform local Energy and Robin Hood the project back towards [development] plans into ‘net Energy in saying we can shift PWLB to save borrowing zero’ plans by 2050. That’s towards a cleaner energy offer costs ‘and you get a ‘business the way we should be living.” through creating an energy as usual’ development,” company ... it means they can says Billington. This is an abridged version provide for the residents in a To break out of that cycle, of an interview with Polly better way than the big players UK100 members “have to find Billington that first appeared in in the market,” Billington says. other forms of development our sister subscription title, The attraction of the capital and reassure their New Power. For in-depth supplier space is, she says, finance team that this is energy industry news and “partly because engaging worth taking a slight hit analysis, see www.newpower.info theenergyst.com April/May 2019 19 GAS & ELECTRICITY Drax CEO: ‘Increasing volatility will boost value of lexibility’ Energy irm says income from lexibility is set to signi icantly increase in 2019, but calls for market and regulatory change. Brendan Coyne reports

Drax claims Capacity market deal it struck with Scottish it is making “Our view that the Capacity Power owner Iberdrola: if less progress Market will be re-established than 100% of Capacity Market developing on the same or similar contracted revenue materialises, coal to gas terms is consistent with the and the portfolio’s gross profit repowering position expressed by the is lower than expected, Drax UK government. We expect will receive a payment from the issue to be resolved Iberdrola of up to £26m. during 2019 and we reflect However, if the portfolio this in our expectations for performs better than expected, the year,” said Gardiner. Iberdrola can earn up to £26m Nevertheless, Drax hedged in upside from Drax, even if against a longer hiatus or 100% of the Capacity Market permanent suspension in the payments are not received.

More gas If the Capacity Market is reinstated and prices increase, Drax may look at building he value of flexible market and regulatory change a new 1.8GW power assets is required so that generators combined cycle will increase, get paid more for providing We expect gas turbine (CCGT) Taccording to Drax power when it is needed. plant at Damhead Creek, an CEO Will Gardiner. Drax made £79m from greater power price option acquired as part of the “Given the structural shift flexibility in 2018. That volatility, a growing Scottish Power acquisition. in UK generation towards figure is set to increase need for system More immediately it is intermittent renewables we significantly in 2019 with “making progress” in developing expect greater power price the acquisition of Scottish support services options for four 300MW open volatility, a growing need Power’s gas and hydro assets. and increasing value cycle gas turbines (OCGTs) for system support services That assumes the Capacity from lexibility and up to 3.6GW of coal to and increasing value from Market will recommence, with gas repowering at Drax Power flexibility,” he said. Drax expecting £68m of capacity Will Gardiner, Station. Those projects would However, the company thinks payment revenues in 2019. Drax require Capacity Market support, said Gardiner. While the company sees Bad debt hits returns at Opus and Haven increasing value in flexibility, it also states that “many Increasing levels of bad debt hit returns for Drax-owned business energy suppliers Opus ancillary services require policy, Energy and Haven Power. regulatory and market change The companies increased market share by 1%, but margins were below target and the to ensure generators are suitably market remains challenging, said Drax CEO Will Gardiner. Drax will continue investing in digital compensated for these services”. technology to lower cost to serve and improve retail margins, he added. Bad debt charges Adjusted revenue for 2018 of increased by 72% to £31m. For the year ended 31 December, B2B energy sales increased from £1,999m in 2017 to £2,242m £4,237m, up £552m on 2017. in 2018. B2B energy supply adjusted gross pro it improved from £117m in 2017 to £143m. Adjusted gross profit for 2018 Noting business risks for the year ahead, the company said it “remains vigilant to the risk” of £601m (2017: £545m). that Ofgem’s retail price cap “could be extended to some SMEs”. The company posted a total profit before tax of £14m. te

20 April/May 2019 theenergyst.com

GAS & ELECTRICITY

ABB and Rolls-Royce to build I&C microgrids ABB and Rolls-Royce have formed a partnership to build microgrids for industrial and commercial companies. The aim is to allow businesses to combine power from CHP, diesel and gas-powered gensets, renewables and batteries to meet their industrial loads. They can function on or o f-grid and can Eon to build 75MW CHP at separate themselves from the main grid in the event of a potential grid fault or DS Smith’s Kemsley paper mill emergency. Andreas Schell, chief Eon has signed a deal to provide steam required for emissions 30% by 2030. executive of Rolls-Royce build a combined heat and DS Smith’s processes as Anthony Ainsworth, CEO of Power Systems, said: power plant at DS Smith’s well as power. Colin Smith, Eon Connecting Energies, said “Combining our integrated Kemsley paper mill in Kent. CEO for DS Smith Paper generating steam and power MTU diesel and gas The energy company said and Recycling divisions, onsite gives energy intensive genset system technology the 75MW development is its said the fi rm “expects to see industries greater effi ciency. and our control solutions, largest customer solutions a 36,000 tonnes per year “We want to show with ABB’s modular project in a decade. carbon reduction” as a result. that sustainability and microgrid solution, The plant, due to start DS Smith has set a profi tability can do hand control capability and generating in 2021, will target to reduce its carbon in hand,” he added. remote service, will o fer customers the combined strengths of the two world leaders in technology.” Massimo Danieli, head Flogas to convert National Grid’s of ABB’s grid automation business line, noted that Avonmouth gas storage site to LPG the company’s Ability e-mesh gives power generation asset owners Flogas has been granted a vertically integrated, planning permission to uni ied view of their convert National Grid’s distributed energy former LNG site at resources and renewable Avonmouth to store LPG. power generation. Site The aim is to create a and leet optimisation, facility capable of holding weather and 34,564 tonnes of LPG, the load forecast and machine largest of its kind in the UK. learning Flogas said it will bolster gas algorithms security for both commercial o fer insights and residential customers. for decision- Flogas Britain managing making, he director Lee Gannon said the Transmission for National was no longer necessary for claimed. site will be “a game changer, Grid Ventures, said the site National Grid’s business. • First massively increasing the UK’s had served its purpose for 40 In 2014, National Grid said published in total LPG storage capability”. years, but as the gas network it would close Avonmouth in New Power Jon Butterworth, president had expanded deeper into 2016 after deciding the facility magazine and COO of of Global the South West and Wales, was no longer required.

22 April/May 2019 theenergyst.com Low carbon gas obligation call BioSNG plant to fuel A think tank has urged the network are relaxed government and Ofgem to • Energy Performance transport leet implement a low carbon gas Certificate methodologies obligation. Bright Blue’s report, are improved Progressive Energy has supported by the Energy • ‘Home Affordability sought consent for a £150m biomass to BioSNG Networks Association, takes Assessments’ (HAAs) plant. The Protos plant is be introduced for in a range of views – from gas expected to start production networks and other hydrogen new-build homes in 2022 within the Energy proponents, to those that believe • The minimum Energy- Innovation District (EID) that gas networks cannot exist related Products (ErP) which brings together in a decarbonised system. requirement for domestic Cheshire & Warrington LEP, It outlines the options gas boilers should be raised Cheshire West and Chester for decarbonising heat, the from the existing level of Council and the University associated challenges and costs, and investors, the report argues. 92% to 95% energy efficient of Chester energy users, and makes the case for new Emphasising the importance • Introducing carbon life cycle network owners, innovators policies, incentives and rule of improving energy efficiency to assessment as part of public and partners working changes to reduce emissions from reduce the significant consumer procurement procedures to alongside. existing gas infrastructure while costs of deep decarbonisation, drive the market for energy The plant will generate gas from unrecyclable minimising cost and disruption. the report also recommends: efficiency and renewable wood and refuse derived Implementing a low carbon • Ofgem increases the heat technologies fuel for the transport gas obligation, which obliges amount of money networks • Establishing a new regulatory sector. It is expected that suppliers to buy an increasing are allowed to spend on unit within Ofgem to a another eight facilities proportion of gas from lower innovation within the oversee regulation of could be built across the UK carbon sources, would enable next price control district heat networks and during the 2020s. a market-based approach to • Rules governing the amount develop price controls First published in our reducing emissions and send a of gas such as hydrogen sister title, New Power. clear signal to energy suppliers that can be injected into See the report at brightblue.org.uk ELECTRIC VEHICLES Delivering on decarbonisation UPS outlines what it has learned from deploying electric vans in central London – and why smart charging could be key to electrifying transport. Brendan Coyne reports

PS first trialled Ensuring the site had London fleet (UPS ultimately interrogates battery state and electric vehicles in sufficient power capacity hopes to go all electric with charges each accordingly, giving New York in 1930. necessitated a substantial 170 central London vans), it only as much as each battery UThe technology grid upgrade – and one sought a different approach. requires. Because it is designed has moved on somewhat, that came with caveats. Working with UK Power for full electrification of the yet in 2019, decarbonising “Where the substation was Networks and Cross River fleet, and the site is not yet at a delivery fleet at scale outside of our leased area, Partnership, via a project capacity, it can charge later at remains a complex challenge the landlord did not want part-funded by OLEV, the night, says Thompson-Sage, with many moving parts. responsibility for maintaining consortium has developed when electricity is cheaper. In Europe, UPS revisited supply if we ever moved out,” a smart grid system. It uses “So we are paying less electric vans in 2008, with six of explains Thompson-Sage. “So battery storage, network for electricity via the smart 12 ordered from manufacturer we had to agree that we would monitoring and smart system and it has also helped MODEC destined for London. pay to strip it all back should that controls to accommodate with maintenance,” she But MODEC soon stopped eventuate. In terms of financing, vehicle charging at the site explains. “If a vehicle is not producing them due to lack it was a tricky situation.” – which would otherwise charging at the rate it should of demand. That led UPS have required an expensive be, that is a warning sign to convert some of its diesel Smart charging grid upgrade (see box). that something might not be vehicles, sending them to Hence when seeking to While the system currently right, such as faulty cables.” Germany to be refitted. further electrify the central uses new batteries, UPS Currently, UPS has more than ultimately hopes to use batteries Practical challenge: 300 EVs deployed in Europe from its current electric fleet Maintenance and the US, with 65 stationed as they approach end of life. Any change of system throws at its Camden base. With a UPS is also exploring the up challenges. But Thompson- range of 50-60 miles a day, option of exporting power Sage says practical aspects UPS is using the knowledge it generated from solar PV into should not be overlooked. is gaining at Camden to inform We are battery storage systems at its “Probably the biggest the next phases of its strategy. paying less London Gateway Facility – and unexpected item was damage while the Camden base does not to cables,” she says. “Vehicle Infrastructure challenge for electricity via the have PV, UPS is “exploring that maintenance is cheaper – but One of the first lessons learned smart system and it option”, says Thompson-Sage. with so many vehicles charging was that the associated electrical has also helped with At Camden, where smart in one depot, it was easy for infrastructure is a key challenge, maintenance charging has been in place loose cables to get damaged.” says Claire Thompson-Sage, since April 2017, it has been Thompson-Sage says UPS sustainable development Claire Thompson- “hugely beneficial”, says is now looking into wireless coordinator at UPS. Sage, UPS Thompson-Sage. The system charging infrastructure.

24 April/May 2019 theenergyst.com “Wireless wasn’t available others zonal approaches. As a global corporation in 2008 [when UPS first Sustainability Zonal clean air zones means committed to decarbonising trialled electric vans at hybrids can use diesel range its fleet, UPS has the resources Camden]. Although it is more goals extenders to recharge batteries. to manage those costs, says expensive upfront and there But some cities plan to make Thompson-Sage, but smaller are some losses, there is less UPS has committed to make the whole area a clean air companies may struggle to one in four new vehicles kit to maintain – so wireless zone. “That means there is no swallow them – especially if purchased by 2020 being an charging could be a more opportunity to recharge [via grid upgrades are also required. alternative fuel or advanced cost-effective option overall.” technology vehicle. the diesel range extender]. So Maintenance may also The company has also in Leeds, for example, we will Scale and share become a challenge as more pledged to obtain 25% of the have to opt for Euro 6 diesels Bringing down those costs is companies switch to EVs. electricity it consumes from as opposed to hybrids.” therefore key to decarbonising “One thing that gets renewable energy sources Could ultra rapid chargers transport – and the broader overlooked is the availability by 2025 and replace 40% not solve that problem? economy. In that sense, of mechanics and of all ground fuel “Not practically. Drivers working through the challenges engineers: if there with sources are doing up to 120 stops a and sharing learning is is an influx of other than day. A 20-30 minute charging something UPS hopes will electric vehicles conventional stop is not really an option,” bring its own rewards. to maintain, petrol and says Thompson-Sage. “Plus “UPS has always had a very do we have diesel. generally, the quicker the strong sustainable ethos and the trained charge, the more expensive wants to be a leader in industry,” mechanics to it is. So we have to charge says Thompson-Sage. “Hence service them? miles a day. in our own centres.” working with partners not just If there is a We need to Another potentially to provide solutions for UPS, shortage, labour identify routes that overlooked issue is licences and but for the whole marketplace.” costs will increase,” could be undertaken drivers. As vehicles with longer Rather than altruism, says Thompson-Sage. “That by an EV, then factor in the ranges and bigger batteries she says that approach is is a very important issue, current power availability at are developed, they increase good business sense. but one that gets missed.” each of those buildings and in weight. If vans exceed 3.5 “Scale brings the cost how many vehicles could be tonnes, younger drivers require down for everybody, which Practical challenge: charged without the need for category C driving licences. is why we aim to develop Planning ahead a grid upgrade,” she explains. Thompson-Sage says that is solutions with partners and If the company is to deliver on Looking first at cities that something to bear in mind. bring technology to market,” its ambitious decarbonisation are implementing clean says Thompson-Sage. goals, it will need to expand air zones helps focus that Finance “Our goals are not just electric or alterative-fuelled activity, says Thompson- The cost of electric vans reducing carbon emissions vehicles outside of London. Sage, but throws further is “cost-comparable” to and increasing sustainability Planning a major logistics elements into the equation. internal combustion vehicles but improving air quality operation on limited range “You have to consider the size over a nine-year service and helping to reduce must account for many of the clean air zone and how life, says Thompson-Sage. congestions – because it is variables, says Thompson-Sage. it is implemented,” she says, But she says the first year is central to what we do.” te “Currently, a lot of the electric with certain cities planning “very capex intensive; the vans are limited to around 50 blanket implementation, and upfront cost is significant”.

Smart charging: Overcoming grid constraints UPS wanted to increase the number of EVs at its Camden base but was limited by grid infrastructure, so it collaborated with distribution network operator UK Power Networks and consultancy Cross River Partnership on the Smart Electric Urban Logistics Project (SEUL), which commenced in April 2017 with government funding from OLEV. The project designed and implemented a smart charging and energy storage system that takes into account variations in daily demand on the network. Taking that approach meant UKPN could immediately add another 20 vehicles to the depot, which previously had charging capacity for a maximum of 52 vehicles. The system means it can now manage up 170 electric vehicles via its existing grid connection agreement, future proo ing the site. Taking a smart approach brings down capex. Without it, UPS would have had to increase its grid connection from 1,250kVA to 2,200kVA. It can also reduce opex, because smart charging can take advantage of cheaper periods. The system has the potential to provide other bene its, such as grid balancing services from the This article was irst published in battery stack, should UPS wish to do so. The Energyst’s 2019 EV report, For details, see: tinyurl.com/y39eaaw3 available as a free download at: theenergyst.com/EV theenergyst.com April/May 2019 25 FEAT.ELECTRIC SINGLE VE HICLSPLITES

itie plans to switch 20% of its cars and Msmall vans to EVs by 2020. That’s around 717 vehicles, says fleet and procurement director Simon King. “It’s very important to focus on the fleet, because it makes up 93% of Mitie’s carbon footprint,” says King. “That initial tranche of EVs will save over 4,000 tonnes of CO2 per annum – about the same as planting 200,000 trees.” Switching 700 vehicles is ambitious. King sweated on his presentation to CEO Phil Bentley, but says he needn’t have worried. “Selling sustainability ideas into a business can be something of a challenge. I spent the weekend preparing a great presentation, but Phil said: ‘You don’t need to persuade me, it’s a great idea’.”

Roadblocks King believes issues of cost and range “have largely been addressed”, at least for small vans and cars, and that Mitie can make the switch cost Mighty ambition: neutral with upfront cost mitigated by fuel savings. The roadblocks that remain, 700 EVs by 2020 says King, are charging points and driver behaviour. Mitie has ambitious plans to convert its leet to EVs. But getting “Zap-Map shows about 19,000 plug-in sockets in the hold of the vehicles is no mean feat. Brendan Coyne reports

ES Water is trialling 10 also helped with choosing the may also look at integrating Testing Nissan e-NV200 vans, right charging infrastructure for EVs with its energy assets. Sinstalling chargers at its the two sites and will provide “We’re not looking at vehicle head office and at a treatment maintenance and support to grid (V2G) just yet, but the water works. The aim is to prove that services going forward. it is something we have our SES Water has EVs can be cost competitive SES energy and carbon eye on. The data from the with diesels and plot a route manager Henrietta Stock hopes trial will lay the foundation decarbonised its to broader deployment. the five-year trial will inform to do V2G in the future.” power consumption, The company will lease the a broader rollout plan, by For now, she says the vehicles, while Drax Group, which time there should be a company is concentrating now it is targeting parent company of SES’s wider range of vehicles to meet on the basics, part of transport emissions renewable energy supplier more of SES Water’s use cases. which is process. Haven Power, will provide At that point, the company, “We switched to 100% a package that includes the which harnesses both onsite renewable electricity supply cost of electricity for charging, generation and load to sell last June, which reduced our telematics and usage data. Drax flexibility services to the grid, carbon emissions significantly.

26 April/May 2019 theenergyst.com UK, so we need to have the and provide visibility on what straightforward, says King. Chargers and capacity right charging points in place.” they can deliver through to “Electricity is not classed Mitie aims to deploy 7.2kW These will be installed at the end of 2020,” says King. as fuel in the same way that chargers at homes and employees’ homes as well as “We need partnerships diesel and petrol is, so there workplaces – which will be Mitie offi ces and the company and commitments.” are some unique challenges smart where possible, says is also approaching customers With hindsight, he says in terms of recompense – King. At sites where a large with a view to installing Mitie would have engaged and we know some other number of chargers will be them at suitable sites. manufacturers even earlier large fl eets are struggling installed, they will be “linked “We will be deploying to secure guarantees. in exactly the same way.” together to do load balancing”, 800 chargers by the end “We are used to buying Mitie will use technology avoiding the cost of additional of 2020,” says King. 1,500 vehicles a year and to track how much electricity capacity, says King. “That’s about the same having a fairly robust each EV uses to ensure Mitie is also open to amount as have been supply chain,” says King. employees with home collaboration with other large installed in the UK in the “Buying smaller numbers chargers are fairly reimbursed. fl eets to access semi-public last three months.” with different suppliers “But it is one of the biggest and rapid chargers, which presents a different challenge. challenges,” admits King. will become increasingly Driver behaviour But vehicles ultimately spread “I believe we have a workable useful as Mitie looks beyond King says battery-powered to the wider market through solution, but I would like to see small vans and cars. cars require a shift in fl eets via the secondary a situation where companies However, that may take driver behaviour – topping market – so engaging will can pay directly for electricity some time to eventuate. up batteries regularly help us all do the right being used at employees “We have lots of transit sized instead of fi lling up when thing by the planet.” homes to charge EVs.” vehicles, but [electric versions] the fuel light fl ickers. With current visibility, He says “utopia” would be are just not available,” says The company is developing Mitie is attempting to match a corporate renewable power King. The low volumes that learning programmes for the rollout of chargers contract that could extend to are available don’t cut it. drivers to support safety and with incoming vehicles. employee’s home charging use, “Paying a high price for a charging behaviour, but King “There is an element of with all billing direct to Mitie. 45-mile range in winter is not thinks Mitie drivers have chicken and egg, but we While “the regulation is not commercially viable,” he says. appetite for disruption. To are trying to address both quite there” to support such an “If you know a manufacturer guage staff receptiveness, parts. With our experience approach, Mitie is “interested in with a solution, give them the fi rm emailed a survey of managing professional speaking with people that can my mobile number.” te to 1,200 drivers for whom services, we think we are support that aim”, says King. an EV may be suitable. ideally suited to manage that “Within three days we had piece of work,” says King. over 500 responses, which Applying the insight from Simon King says shows a real willingness from the project will also provide there is ‘an element of employees,” says King. a commercial advantage as chicken and egg’ but Mitie starts to manage EV Mitie is attempting Vehicles rollouts for customers. to match the rollout Vehicle supply is a challenge. of chargers with “My biggest ask of car and Billing and bene its incoming vehicles van manufacturers is: meet Working out how to with us, commit to supply recompense employees is not

The major remaining aspect the billing and benefi ts for can easily become issues is emissions from vehicle employees that charge their in a work environment so fuel – so that comes under cars at work. “I don’t think they need to be managed.” my energy and carbon remit. companies are on top of that Stock says Drax has The data from the But we manage our vehicle yet,” says Stock. “Even without provided support in managing fl eet separately, so we need to company charging points those challenges, but thinks trial will lay the ensure collaboration between there can be challenges in other stakeholders could foundation to do departments,” says Stock. charging for mileage in an EV.” be more proactive. V2G in the future “I think that is a challenge Then there’s the general “There could be more businesses face – the vehicle aspect of helping staff become of a push from vehicle Henrietta fl eet is not seen as an energy more comfortable with EVs. manufacturers and leasing Stock, asset, despite the fact that we “Quite a lot of people are companies,” she says. SES report on CO2 emissions.” unsure about electric vehicles “Demonstrating that Water There are other – will there be charging spaces EVs are cost competitive housekeeping aspects to when we need them, range is really important and manage, such as working out anxiety – minor concerns needs their input.” te theenergyst.com April/May 2019 27 ELECTRIC VEHICLES DNOs prepare for impact Western Power Distribution’s new electric vehicle strategy details what its network can handle, costs of connections and upgrades – and some interesting plans to pay customers that charge their cars lexibly. Brendan Coyne reports

estern Power Flexibility: for businesses Estimating connection cost and timescale Distribution WPD said there is potential for (WPD) has Charge Point Likely Approximate Network Approximate depots and long stay car parks type and installation connection considerations connection Wpublished power output location lead-time cost to participate in fl exibility an electric vehicle strategy Slow up to Domestic Immediate None None programmes – less so for that outlines how it plans 3kW rapid charging destinations. Fast 3.7kW Domestic or Immediate in Usually none Usually none Fernández/Flickr Oxford_Pablo Commons Creative to handle increased uptake street side most cases While the DNO already by households, businesses Fast 7kW Domestic or 4 to 8 weeks Likely upgrade to £1,000 to procures fl exibility from street side service cable and £3,000 and local authorities. local mains businesses in certain The strategy details WPD’s Fast 22kW Street side 8 to 12 weeks Streetworks and £3,500 to postcodes, it will also launch estimations of EV uptake. or public permissions £12,000 projects to show how fl exibility charging It thinks 217,000 chargers location could be used within EV will be connected to its Rapid 43kW Public charging 8 to 12 weeks Streetworks and £3,500 to charging to free up capacity. network by 2023 – up from location permissions £12,000 It will start with simple Super 130kW Public charging 16 weeks Streetworks, £70,000 to about 7,000 a year ago. or multiple location permissions and £120,000 ‘alternative connections’ The distribution network rapid cost of land for approaches – where the chargers transformer operator (DNO) indicates it has business agrees to charge spare capacity to handle those Source: Western Power Distribution Electric Vehicle Strategy overnight and use capacity kind of numbers in urban areas, that is not required during with existing infrastructure – types of chargers, ranging or charge for reinforcement that period. It will then ground-mounted transformers from nothing and immediately works where required. move to ‘active network – able to provide a charge for slow (3kW) domestic For on-street parking, management’ or ANM for customers every fi ve chargers, to £120,000 and WPD said it may be able solutions, where customers days, provided charging is 16 weeks for a 130kW super to deliver options through react to constraint signals. ‘optimised’, or managed. charger or multiple rapid new street lighting. WPD said it has already However, in rural areas, chargers (see table). implemented an ANM which use overhead networks, It states that businesses with Flexibility: for households system at a car showroom “options are somewhat less”. depot-based fl eets seeking to As well as fl agging discussions in Lincolnshire. The company plans to install signifi cant numbers of with an airport over vehicle- produce a heat map of chargers – and that are likely to-grid potential, WPD trailed Whole system lexibility transformer capacity, showing to mostly charge at night when plans to create an ‘active’ WPD said it is in discussions where capacity is available and demand is low – will be offered domestic fl exibility product with an airport about where constraints are likely. alternative connections in order for EV owners, “where we deploying a vehicle-to-grid It said aggregators could to mitigate costs and minimise are able to pay directly for system that would deliver use that map to determine required reinforcement. energy deferred under demand frequency response to National where they can offer fl exibility For other workplaces and response demonstrated Grid. Its plan also hints at solutions, or signal directly EV charging destinations, through metering”. further incentives for people to EV owners that they will such as supermarkets and However, it said this would that use local generation, need to pay more if they retail parks, WPD said it likely go through suppliers storage and EV charging in want to charge at certain will make use of existing or other entities who will ways that help the grid. times via time of use tariffs. supply where it is capable of aggregate customers and It states: “As vehicle-to- Either way, WPD said it would supporting the additional load, then need to show to WPD grid solutions and smart not allow domestic users to that an action has been taken charging develop we have the blow fuses and inconvenience to qualify for payment. opportunity to make use of other customers – and will use It will also create a ‘passive’ these fl exible solutions on our tools to manage demand within product, where WPD pays network. In fact, a customer known limits ahead of overloads. an annual fee to EV owners who makes use of local 217K that sign up for a time of generation, storage and EV Costs Number of chargers WPD use tariff, and then uses charging could actually reduce The plan outlines the cost, price signals to encourage their impact on the network lead times and related works thinks will be connected to customers to shift charging and help us avoid conventional required to connect different its network by 2023 away from constraint periods reinforcement.” te

28 April/May 2019 theenergyst.com

ELECTRIC VEHICLES EV infrastructure: Charging ahead The EV tipping point is coming, say charging point companies, fossil majors and disruptors building charging networks. How are they planning to meet the challenge, asks Brendan Coyne

ithin fi ve understand EVs are something charging points across its estate • Presence of charging years, EV they have to deal with now and new homes portfolio. points made a visit to charging – not in a few years,” says these sites more likely “Wwill be Fairbairn. “It is a megatrend.” Driving pro it for 95% of drivers. like wifi ; a hygiene factor that Legal & General shares that Tom Callow, director of you have to offer or customers view. It has acquired a 13% communications and strategy Forecourt models will be unhappy,” says Erik stake in Pod Point – giving at BP Chargemaster, agrees BP, which bought Fairbairn, CEO and founder the fi rm both signifi cant and says destination charging Chargemaster in 2018, has of EV charging infrastructure expansion capital and boosting drives both footfall and spend. some 1,200 UK forecourts provider Pod Point. its development pipeline: Legal “Our data shows drivers (300 owned and operated Supermarkets and other & General plans to install are going into those sites and more than 900 owned retail and destination sites are and spending money,” and operated by dealers) and mobilising. Tesco has struck he says, providing a is commencing a rollout of a deal with Pod Point and breakdown via email: 150kW superfast chargers. Volkswagen to install 2,400 • The majority of drivers who “Forecourts are designed EV charging bays across 600 charged at these locations did for a quick turnaround so the stores over the next three so more than once a month, 150kW units fi t that profi le years, the biggest UK rollout creating regular footfall nicely,” says Callow. “Rapid of its type to date. Some will be Corporates • The majority of drivers who and ultra rapid chargers free-to-use 7kW units, others with charged at the locations – will take up an increasing 50kW rapid chargers, which customer car parks up to 84% for one type of proportion of our network.” shoppers will pay to use. location – spent money there Yet even with that amount As Tesco’s competitors start understand EVs are • For one type of location, of power – where cars can to respond, Fairbairn says it will something they have more than one in four take such speeds – a full move the market. “I would be to deal with now – drivers were not members charge still takes around 20 unsurprised if in six month’s not in a few years of the relevant loyalty minutes. That could present time we see a deal of another scheme, suggesting challenges to forecourt order of magnitude. Corporates Erik Fairbairn, they may not otherwise operators and motorists with customer car parks Pod Point have visited the site alike. But Callow thinks it

30 April/May 2019 theenergyst.com may be an opportunity. “That is outside my business their existing depots. Boulton “Most people don’t fill up a unit,” says Callow. But he says the company is in “very fuel tank from full to empty, does not rule it out: “It’s early” discussions with one they tend to top up with safe to say all businesses in bus company about that. 20-30 litres. With electric This is not this area are looking at all “Its depot is split across two cars, we will see a similar options on the table rather leased sites without long-term top-up culture,” he says. a trial, but than a single avenue.” commitments,” says Boulton. “An efficient EV does around a network rollout. “But I think we will find other four miles per kilowatt hour. Others are talking Transmission pivot scenarios where the depot is If you can offer 100 miles of about dipping toes Pivot Power is connecting close to the city centre and not range in 10 minutes, it is not 49.9MW batteries directly to within reach of our city edge that much longer than current in the water; BP is the transmission system with a substation. Town real estate fuel courts,” suggests Callow. de initely going for a view to delivering grid services has considerable development “OK, topping up the tank swim – and later, EV charging. value, does it make commercial takes two minutes but by the Tom Callow, BP The firm hopes to work with sense to move further out?” time you have queued and paid, chargepoint operators – and In some cases, Boulton it is not a million miles away.” Chargemaster thinks they may ultimately thinks that may be the only way Moreover, drivers do not come to Pivot. Chief operating Pivot can provide power for need to attend electric cars officer Matthew Boulton says depots. “We’re not proposing while they are charging – so its transmission-connected to take a 33kV cable through they can buy a coffee or other approach “is unblocking a a city centre,” he says. te goods and services on offer. problem they will face”. Callow says this is where “It is not just about securing BP’s experience with retailers the 1-2MW they will need such as M&S will help “make It is not for 10-15 fast chargers, but all of that fit together”. just about future proofing. In five to BP Chargemaster will begin securing the 12MW 10 years the utilisation rates its 150kW forecourts rollout will reach a level of demand “as soon as possible this year”, they will need for that no DNO can provide for says Callow. But he stresses that 1015 fast chargers, today, because they cannot ‘rollout’ is the operative word. but future proo ing promise reserve capacity.” “This is not a trial, but Boulton says the “dream” a network rollout. Others Matthew Boulton, scenario would be to turn are talking about dipping Pivot Power some of the 45 sites Pivot is toes in the water; BP is planning into “EV flagship definitely going for a swim.” sites” with showrooms and battleships” with distribution rentals, alongside other retail. Power struggles network operators (DNOs). He also believes Pivot’s This article is from our 2019 Securing megawatts of Everyone deploying city edge sites could prove EVs report, which contains capacity for forecourts will significant numbers of chargers interesting to fleets and expert views from energy be neither easy nor cheap. therefore needs to find “creative transport providers. Boulton companies, EV charging irms, “The power piece will be a ways” of managing capacity thinks bus companies “could consultants, and businesses challenge,” admits Callow. He challenges, he adds, with BP be massive” for Pivot. that are electrifying their says obtaining distribution Chargemaster no exception. Capacity constraints may lead leets or rolling out charging network connections and What about some transport companies to infrastructure. capacity can occasionally connecting directly to the set up around the grid, rather Download the free report at become “like a game of transmission network? than trying to bring the grid to theenergyst.com/EV Electric buses-as-a-service With cities establishing low emission zones, bus companies are under pressure to switch their leets to alternative fuels. Their challenge is cost and complexity, says Daniel Saunders (right), investment director at Octopus Investments. The company thinks it can solve that by o fering electric buses-as-a-service. “For bus operators irstly the buses are very expensive and secondly they have to invest in their depots, which probably means they must also invest in the local grid,” he says. While depot investments can sit on balance sheets, grid upgrades do not, making an investment harder to justify to shareholders. Saunders thinks that makes a pay-per-mile approach attractive. “They stay in control and choose the buses they want to run. We package that together with the infrastructure and they pay o f the investment as they use the vehicles.” Saunders agrees with Pivot’s Matthew Boulton that some operators may choose to move closer to grid infrastructure than pay for upgrades. “That is not always straightforward, but if that is what they want to do, we will support it. We are coming at this with no restrictions.”

theenergyst.com April/May 2019 31 ELECTRIC VEHICLES Oxford_Pablo Fernández/Flickr Fernández/Flickr Oxford_Pablo Commons Creative

xford City Council Once the fi nal investment has received decision is made, RedT will government funding Oxford goes have “six months from notice Oto build what it to proceed to delivery”, said terms a ‘Superhub’ – a massive Boulton, with the company lithium ion-fl ow storage hybrid large on hybrid aiming to pack 72 of its that underpins a network vanadium redox fl ow storage of EV chargers via a 10km units into 18 containers. private wire around the city. storage, EVs and While RedT has built a The project will also install 1MWh lithium-fl ow hybrid in 300 heat pumps, which, along Melbourne, Australia, CEO with the battery and EVs, Scott McGregor said the Oxford will be smartly controlled to heat pumps system would be the “largest enable fl exibility trading. vanadium/lithium hybrid system The hub will consist of a Oxford City Council plans to build a massive to have been installed globally”. 48MW lithium-ion battery plus The consortium hopes to gain integrated 2MW/5MWh fl ow hybrid battery and EV charging network as well planning consent by summer storage connected directly to the as a heat pump loop. Brendan Coyne reports and deliver the storage, private transmission system at Cowley wire and EV chargers by 2020, substation, south Oxford. Pivot with the heat pumps installed Power is raising investment for both the city bus depots and Habitat director Ben by 2021, when the Renewable the project with government two or three big fl eet points Irons said the grant funding Heat Incentive closes. body UKRI putting up £10m. along the way,” said Boulton. enables the company to ramp Councillor Tom Hayes said RedT is the fl ow battery The heat pumps do not up R+D activity and further the project would “move the provider. Habitat Energy will require a connection to the enhance their forecasting and council closer” to its goal trade the fl exibility, largely on private wire but will be linked algorithmic trading capability. of becoming a zero carbon the wholesale markets. Kensa to a shared ground loop He said Habitat will start city. He said businesses were Contracting will provide the system. They will be controlled virtual trading of the battery “as investing in the city because ground source heat pumps. by the same software that soon as possible” to demonstrate of its investment in projects As well as powering a public Habitat is developing to trade the revenue potential for the “exactly like the Superhub”. ‘ultra-rapid and fast’ charging power from the battery. £41m project and execute “[It] will enable the city network of around 100 charging the optimisation strategy.” council to install more points, the plan is to run the He added that the company electric vehicle charging private wire to council depots on is also keen to apply its platform points of the kind that charge either side of the city, enabling to EV charging and heat pump vehicles quickest,” he said. electrifi cation of Oxford’s fl eet, optimisation so that vehicles “It gives black cab drivers ultimately even the bin lorries. are charged – and houses kept additional support to shift from Pivot Power chief commercial warm – at least cost as part of a 100% diesel today to 100% offi cer Matthew Boulton is tradeable cross-vector system. electric in the next few years. hopeful other logistics fi rms The aim is to use RedT’s units, It enables the council to move will connect to the network. The Oxford system would which do not degrade, to provide our own vehicles to electric on “We already have three be the ‘largest vanadium/ “some heavy lifting” and assess a faster timescale and, crucially, offtake points from the council. lithium hybrid system how they perform in a hybrid to install heat energy across We would love to pick up installed globally’ system, said Pivot’s Boulton. homes to tackle fuel poverty.” te

32 April/May 2019 theenergyst.com Oxford_Pablo Fernández/Flickr Creative Commons from 2020. combustion enginemodels internalof all of its hybrid versions or electric sustainably.” more commitment to act e-mobility, MickCameron. our employees,” said head of of alternative fuelsamong help encourage theuptake engineering centre we can and visitors atourGaydon charging to sta f points a network of electric other UK sites. moreinstall chargers at its New Motion. It plansto fromstations Shell-owned charging 7kW smart Gaydon engineeringcentre. vehicle chargers atits electric 166installed smart Jaguar Land Rover has movesmart Jaguar makes Jaguar plans to make “It’s of our part “We hopethatby providing The company is using Car parks soughtforCar vehicle-to-grid trial can becharged indifferent that large numbers ofvehicles technology. It wants to prove solar, storage andsmart system seekssixtrialsites. stabilising theUKpower vehicles couldplay arole in to demonstrate howelectric An InnovateUK-funded project The project will combine The project combine will involves usingthecars’ services are viable. This (V2G) from vehicle-to-grid that commercial returns requiring major upgrades. without breaking thegridor hospitals andtrain stations– as publicandretail car parks, types ofdestinations–such It alsohopesto show can emailinfo@flexitricity.com Flexitricity. Interested parties PowerSmart Systems and Turbo Power Systems, Flexisolar, markets whenpricesspike. in wholesaleandbalancing national gridoperators, or services –eitherto local or batteries to provide various The consortium comprises comprises The consortium seeks sixtrialsites funded project funded project InnovateUK- DSR & STORAGE A year in response: National Grid outlines DSR past and future

System operator uses more Stor and frequency response but lags challenges ahead. Brendan Coyne reports

ational Grid’s Figure 1: Demand Turn Up – Average availability and utilisation it may be that the prices on annual Power prices, and average size of accepted lexibility units offer were not suffi ciently Responsive report attractive and that an annual 2017 2018 shows the electricity auction made price discovery N Average availability (£/MW/h) £1.51 £1.48 system operator used an Average utilisation (£/MW/h) £68.44 £65.33 diffi cult. It said DTU is increasing amount of demand- Average unit size (MW)) 6.9 7.7 ‘not viewed as an enduring side response in 2018. solution’ for negative reserve However, greater competition and will be reviewed along in services such as short-term Figure 2: Triad avoidance activity across 2009/102017/18 with other services this year. operating reserve (Stor) and Winter Number of Maximum Triad fi rm frequency response (FFR) occurrences (days) avoidance (GW) Triads continued to drive down prices. 2009/10 16 1 Transmission charges for large Meanwhile, demand turn 2010/11 15 1.2 businesses are based on ‘Triad’ up (DTU) attracted fewer 2011/12 18 1 periods, the three half hours providers and looks set to be 2012/13 15 1.2 of highest demand that are at revised or replaced by another 2013/14 23 1.8 least 10 days apart, between 2014/15 25 1.2 negative reserve service. November and February. 2015/16 37 2 The report details changes 2016/17 49 2 They are set retrospectively, to ancillary services and 2017/18 34 2 so those aiming to reduce bills the broader energy market curtail demand or switch to and their effect on fl exibility on-site generation when they providers. Some of these are Competition within Stor has fell by 64% to £110.18/hour. think a Triad period is likely, positive, such as the Electricity driven down prices paid and in The ESO said aggregators usually on a winter evening System Operator’s (ESO) steps 2018 National Grid used 49% or virtual power plant between 5pm and 6pm. to open up the Balancing more Stor than in 2017. It said operators may be fi nding National Grid does not have Mechanism and its introduction the impact of competition on effi ciencies in their business much Triad data, and can only of long-term contracts for FFR. accepted prices made using models that enable them see how people react to cold Others, such as Ofgem’s Stor more economic than using to undercut traditional weather. But as more people overhaul of charging other tools. However, National providers, or that the larger participate, it said Triads are arrangements, the suspension Grid noted the MCPD and power players are focusing getting harder to predict, so of the Capacity Market and Specifi ed Generator controls – on less pressurised returns businesses are taking evasive the impact of the Medium which prevent diesel generators in the intraday mandatory action more regularly. Combustion Plant Directive from taking on new balancing frequency response market. (MCPD), are causing services contracts without Next steps market uncertainty. fi tting expensive abatement Demand-turn up National Grid said it would As a result, fl exibility – could have an impact on National Grid launched demand- continue to work on product providers have warned National Stor from this year onwards. turn up to counter falling revisions and introduce new Grid of a near-term risk that demand on the transmission market opportunities in more demand-side response FFR rush system in summer. It is a 2019, such as wider access (DSR) providers could exit the Aggregators have piled into fi rm simple service: providers must to the Balancing Mechanism market than enter (see p38). For frequency response, pushing out reduce exports to the grid, or and Project Terre. much of 2018, however, they traditional providers: in 2017, increase consumption and The ESO will also examine piled into certain services in 392MW of dynamic capacity are required to have basic exclusivity clauses, where the hope of securing contracts. was accepted from demand- metering requirements, a changes could allow DSR side response providers; this phone and Microsoft Outlook. providers to sell fl exibility into More Stor increased to 2720MW in 2018. However, uptake was lower other markets if they can still Stor is a mature service, Year on year, average static in 2018 than in 2017, with deliver contractual obligations – with more than 3,300MW of FFR prices fell 30% to £32.46/ about half the volume of bids a move that would be welcomed unique capacity tendered from hour. The average accepted entered, and it was far less by those with aggregated DSR providers alone last year. price for dynamic FFR contracts utilised. National Grid said portfolios of assets. te

34 April/May 2019 theenergyst.com Advertorial A flexible move for Britain’s greenest energy company Ecotricity enters the flexibility market

Last year, Ecotricity partnered with invested and fully committed. experienced German smart grid, or virtual With this in mind, we have initially power plant (VPP), operator connected up our 6.9MW wind farm at Next Kraftwerke, to launch our own Alveston in South Gloucestershire. This flexibility platform. asset is being deployed for traded and The new platform is designed to provide balancing markets, as well as frequency flexibility not only for Ecotricity and our response. power portfolio but also for business Critical to its successful participation in partners and supply clients. It is a proven the VPP is the ability to accurately forecast model that has been a material revenue generation output as well as very short- earner for thousands of businesses in term prices – and then to control the asset Germany over the last eight years: the activity 24 x7 in conjunction with those platform wirelessly connects thousands of forecasts and our proprietary ‘bot’ which businesses, energy generators, and energy interfaces with our flexibility platform, and storage systems, remotely monitoring the is critical in controlling renewable and energy grid and making small adjustments demand-side response (DSR) assets. to these assets. Demand-side response and energy storage Why the move into flexibility platforms? The VPP controls not only generation As a green supplier entirely dependent assets, such as our wind farms, but also upon renewable power, developing a smart DSR customers and the storage assets grid is a particularly important piece of work we have in development. It will also be for us, as we seek to embed more flexibility a key element of our domestic offering, into our power portfolio. For Ecotricity, it is harmonising smart EV charging, domestic very transparent as to how that revenue about strengthening our commitment to PV and domestic storage, as well as stack is created – and what we think it generating renewable energy that works for providing DSR income to our business is worth. We do this after we’ve made a our customers – and the grid. supply sites. We believe that an offering site visit and examined the essential and Our entry into the flexibility market is a for business clients incorporating DSR optional loads with the plant manager. first among the independent supply sector, activity with their supply will be leaner This is important, because we know which has typically been characterised by and cleaner for clients, both in terms of that in the past aggregators have over- aggregators, now either being swallowed billing and metering, and also because any promised and under-delivered in many by bigger players, or taking out supply DSR created imbalances won’t trigger any cases. In some extreme cases, aggregators licenses in an effort to access other income tolerance/‘take or pay’ clause penalties. have sought to penalise their clients for streams, such as the traded and balancing A big problem faced by owners, or wanting to run their plant at times that markets. For these aggregators, theirs has prospective developers of renewable differ from the aggregator’s wishes. Our largely been a non-risk presence in the assets and DSR providers, is that it is very scheduling ensures a client’s ‘must run’ ancillary services market, sharing income difficult to model the business case to see load is never impacted. with their clients on a best-effort basis. whether involvement in a third party VPP, However, at Ecotricity, we need to such as ours, is really worth it. Revenue A healthier grid – better for everyone develop this proposition for ourselves, streams are complex and constantly Our experience as a supplier in managing not least to enable some of our storage changing, either in their design or value. our power position will be a major plus, plans, so it is useful to be able to offer such For this reason, it is a crucial part of the because VPP performance will be a additional income stream possibilities to process to model the revenue stack for our function of how well we optimise the partnering businesses, who can see we’re clients, sharing the assumptions and being revenue stack, which is very much a function of good forecasting for short-term system needs, a necessary part of what we do as a supplier. In addition, we’re able to spot the most valuable opportunities in the market and optimise the flexible assets of our customers to capture them. We’re excited to be working with such an innovative partner as Next Kraftwerke, which has over 6,800 sites and 6GW of power under its control. Our proposition means lower costs or enhanced revenues for our partners and clients, as well as enabling the further deployment of battery storage and renewable generation into the market – a vital part of the UK’s journey towards a cleaner, smarter grid. Our set-point control of a wind farm in action. From 9:30 to 9:50 you can see the precision with which the wind turbine follows the signal we generated [email protected] DSR & STORAGE Brain power: lexibility’s future? State-owned Statkraft is building a big stake in the UK lexibility market. It aims to bring businesses into its AI-driven virtual power plant and simultaneously sell them energy. Brendan Coyne reports

renewable energy. We have a gigawatt of different types of Merging of flexible assets connected in 50 different locations, so our markets platform works,” says Dale. The VPP ‘brain’ works on Crucially, the Norwegian both sides of the meter, state-owned company has an A- stacking up ancillary credit rating, “so you know you services as well as trading in are going to get paid,” he adds. energy markets, says Dale. Other large energy companies “It needs to do both are attempting to combine [aspects] because the PPAs, flex trading and energy ancillary market is moving supply. Shell, for example, has shorter and shorter. The platform’s origins lie in remotely controlling wind farms launched and acquired energy National Grid is looking to retail businesses and will acquire procure up to day-ahead and we are seeing the tatkraft has quietly into the mix, while the Germany VPP operator Limejump (see merging of markets and amassed a gigawatt operation added pumped p39), a company Statkraft’s services. It ultimately of flexibility in the storage. Pulling it together into Ventures arm had invested in. becomes the same thing.” SUK. It plans to double “one algorithmic package” was Dale is not overly concerned this by the summer while a natural evolution, says Dale. by competition, large or building a pipeline of new “It is like a brain that has small. Competitors may find Growth distributed assets via its B2B evolved, making zillions of it is “difficult to make supply, Dale believes the VPP will supply business, Bryt Energy. calculations a year to place settlement and trading systems quickly reach 2GW of flex by Duncan Dale, UK vice- flexibility where it delivers work together,” he suggests. bringing existing customers’ president sales and new products, most value,” he says. “It is “We are the largest offtaker wind and solar farms into the is confident Statkraft will shake like a system operator and of renewable energy and the platform. But he says Bryt up the flexibility market. He a market built into one.” largest long-term offtaker will also bring in megawatts just wishes they could think in the UK market. Hydro by funding solar and storage of a better name. “Virtual DNA flexibility is also our core installations for industrial power plant (VPP) doesn’t do Dale believes the platform competency. Working with and commercial firms. the technology justice,” Dale has “high growth potential” renewable and intermittent He says business customers suggests. “We describe it as and thinks combining behind generation is our DNA and are receptive to the idea that a ‘flex aggregation brain’.” and front of meter assets with the VPP taps into that.” a “flex aggregation brain” The platform’s origins lie energy supply sets Statkraft Regardless of market and is working for them. in remotely controlling wind apart in a crowded market. regulatory changes, says “They like that because farms to avoid negative pricing, “Why us? Because trading Dale, “we will invest and [Bryt] helps with demand- a growing requirement as energy is what we do, especially improve what we do, so that side management, price, renewables penetration increases. if a customer signs a long- load, demand-side response Statkraft’s team in Germany term agreement they can and we can fund rooftop then developed software to sure that we are good for solar as well,” says Dale. automatically balance Alternative that now – and good “The customer makes an generation, rolling in for that in future”. immediate saving. We pay, it weather forecasts and technologies He points out that is off their balance sheet, and other market data Statkraft recently struck a deal with low Statkraft, in various we deal with the landlord lease and using robots to storage company RedT. The immediate aim is guises, has been problems that many have. trade within-day. to deploy up to 10MW of solar PV and 6MWh of around since 1895. “So it is a renewable offering Meanwhile, low storage at industrial and commercial sites, “There are other IT that future-proofs customers the UK team built scaling up to 100MW over the next three years. It companies [offering from all the changes taking code to optimise seeks contract lengths of 25 years and claims the VPPs] with some very place in the distributed battery charging and funded solution will cut energy bills by 20%. smart people on board. energy revolution,” he discharge. Then they Dale says Statkraft will provide “a range But they may not exist suggests. “Many are finding brought gas peakers of alternative battery technologies” to in two years’ time.” that quite compelling.” te customers, though details remain under wraps. 36 April/May 2019 theenergyst.com may introduce one ahead DNO to deploy lex across of tenders. It has floated entire network – down to paying around £300/MWh for flexibility, and will initially households and EVs procure four services (see box). The split between availability and utilisation payments will vary by service. SSEN plans to launch three more CMZ service types by the end of the year. “SSEN is committed to being a neutral facilitator of local and national markets that are created by the transition to a flexible network,” said Stewart Reid, head of Future Networks at SSEN. “To do this successfully visibility, transparency and accessibility will be key. Too often asset owners that may be considering SSEN’s lex appeal providing flexibility services find that the process is neither clear nor simple. cottish & Southern in providing flexibility to “With Piclo we are hoping Energy Networks has Flex types register on the Piclo platform, to address that challenge, agreed to procure a flexibility marketplace used to provide the communities flexibility and demand- • CMZ Prevent – the by distribution operators in which we operate a S traditional CMZ product side response services across to find service providers. level-playing field that its entire network, rather that supports the The deal is Piclo’s first supports local solutions management of peak than just constrained areas, commercial contract, following and builds a network of demand which SSEN calls CMZs. trials with all of the UK DNOs. flexibility providers.” • CMZ Prepare – to support The DNO said it has the network during For SSEN’s requirements, Piclo CEO James Johnstone not set a megawatt cap on planned maintenance providers can be individuals, said he is “delighted” to reach how much flexibility it will work communities or aggregators. a commercial agreement procure, nor a budget cap. • CMZ Respond – to All assets – from small with SSEN – and outlined “We are committed to support the network scale renewables, batteries global expansion plans. securing flexibility market during fault conditions as and electric cars, as well “This deal will hopefully services wherever possible a result of maintenance as load response and be the first of many, not in lieu of load-based work demand reduction/energy only in the UK but with reinforcement so we do not • CMZ Restore – to support efficiency – can play a other grids across the globe want to cap our aspirations,” a the network during faults role, said the company. which suffer from the same spokesperson told The Energyst. that occur as a result of SSEN says there is no limitations,” he said. SSEN urged anyone in its equipment failure minimum kW threshold to “The potential reach for our distribution areas interested register an interest, but it software is enormous.” te Norway’s Equinor invests in Reactive Technologies

eactive Technologies while Ingenious Infrastructure ‘hybrid’ or enhanced up our power purchase has secured another invested last October. PPA structure optimisation and Rtranche of funding, Reactive Technologies for renewable grid measurement with Norwegian state- operates in a number of areas. generators. and analytics owned Equinor investing. It is developing services for Reactive CEO services to reach The demand-side response grid operators to measure and Marc Borrett said renewable generators and smart grid company said manage inertia, has a demand- the company will and system the funding round was eight side response or ‘optimisation’ spend the money on operators globally”. digits. It also counts Octopus platform for corporate more staff and to Funding round Equinor is the new and RES as strategic backers, energy users, and touts a “significantly scale was ‘eight digits’ name for Statoil.

theenergyst.com April/May 2019 37 DSR & STORAGE

ggregators and They called for better fl exible power collaboration and coordination providers at between the ESO and DNOs/ Athe electricity DSOs to enable DSR providers system operator’s latest to understand the “entire pot” Power Responsive meeting available to those that can presented a gloomy outlook: provide fl exibility services. “In uncertainty created by the other words, a holistic view of suspension of the Capacity where the opportunities may Market (CM) and the targeted lie nationally, regionally charging review (TCR) is and locally,” according compounded by Brexit. to the summary. According to the meeting summary: “It’s hard to Move faster make a [DSR] business case Market participants pointed for the UK right now.” out that it takes approximately Participants reiterated calls four years until an auction to better align changes to can deliver from fi rst concept residual or backwards-looking DSR providers and urged market makers to charges (Triad has been a move faster where possible. mainstay of DSR business Cathy McClay, head of cases) with changes to urge National Grid future markets at National forward-looking charges and Grid ESO, said it would the fl exibility markets National “shortly” issue a full Grid and others are trying to go faster, Ofgem update on balancing and to create. As a minimum, ancillary services, covering they believe Ofgem should what they will be and how not make any decisions on they will be procured. the TCR until it is clear that to go slower She said the Epex auction the CM will be reapproved. will go live in March with There is a near-term risk that more demand- standardised versions of Local lex markets side response providers could exit the market existing FFR products. Flexibility providers also While Frequency Control urged distribution network than enter, with irms urging National Grid to by Demand Management operators to show greater increase the pace of product redesigns in the (FCDM) will end, a new willingness (i.e. money) to face of revenue streams drying up. Meanwhile, faster static FFR product support the market, pointing launched in March. out that placing price caps Ofgem must consider charging arrangements in However, new dynamic on fl ex services has in the context of the time required for competitive FFR products need to be some instances resulted in stress tested – which could DNOs procuring nothing. markets to develop. Brendan Coyne reports take “upwards of a year”. te WPD’s 93MW DSR tender now open

estern Power The tender closes late network and pre-emptively fee of £150MWh. Distribution April and WPD urged reduce network loading Dynamic pays a small W(WPD) has interested providers to • Dynamic – developed to availability fee but a utilisation opened its demand-side register as soon as possible. support the network in fee of £300/MWh. response tender window. It has developed a postcode the event of specifi c fault Restore pays £600/MWh. The company aims to checker for conditions, usually during Firms can provide either procure 93.4MW of DSR potential summer maintenance Secure or Dynamic in most services in 12 areas across providers to • Restore – designed areas, and make themselves its network for delivery check if their to help with network available for Restore services. in 2019/20. assets are in restoration following The company says The company the right areas. rare fault conditions. it will release further has also WPD is Secure will pay fi rms an procurement zones in July. signposted the currently looking for ‘arming fee’ between £75/ fl ex it is likely to three types of services: MWh and £118/MWh, Interested parties can require out to • Secure – designed to depending on location. It register via: https://rfxxp. 2024. manage peak demand on the will also pay a utilisation westernpower.co.uk/ECE

38 April/May 2019 theenergyst.com Shell buys DSR aggregator Limejump Fossil fuel giant makes move into virtual power market

hell is to buy virtual together faster,” he said. power plant fi rm “It becomes a supercharged Hydro into VPP Limejump. The move version of what we have S follows Shell’s recent always tried to do, with Limejump is adding hydro to its virtual acquisition of home battery greater support and power plant (VPP) and will trade its power into storage fi rm Sonnen. resources,” Nygard wholesale and balancing markets. Shell, which sells added. “We would The irm has signed a deal with DHG Hydro for the 1.2MW energy directly to otherwise have Langwell hydro plant near Ullapool, Scotland. DHG has a lot large industrial been looking at more hydro assets, noted Limejump. and commercial quite a different Access to wholesale markets via the Power Purchase Agreement (PPA) is worth around £300,000 for the plant, companies set of scale said Limejump, with additional value to be had from the in the UK, opportunities.” Balancing Mechanism and ancillary services procured by also acquired Shell’s buy National Grid. household follows a round energy retailer First of consolidation in Utility a year ago. the UK demand-side forced integration, but it in the UK as we accelerate The fossil fuel company response market. Kiwi Power’s sets up a very interesting the building of a customer- could now arguably be founders sold out to Engie strategy in the long term. focused energy system in called a virtually, if not in late 2018, Centrica bought Shell New Energies’ vision support of Shell’s strategy to vertically, integrated utility. Restore for £62m the year is fully aligned with ours.” offer more and cleaner energy Terms of the deal were not before, with Enernoc bought Brian Davis, vice-president solutions to customers.” te disclosed. Upon completion and renamed by Enel in a deal Energy Solutions at Shell Limejump will become a that valued the fi rm at £236m. New Energies, said: “We wholly owned subsidiary of Nygard suggested the global are impressed by the Shell, but CEO Erik Nygard investments in renewables Limejump team and told The Energyst that the and smart grid companies their track record Erik Nygard: fi rm would retain autonomy. Shell has made in recent years of building a digital ‘We can “Everything stays the sets the acquisition apart. energy platform that move faster same in that sense. We will “Suddenly it starts to connects and optimises now’ remain an independent look highly global; a big a diverse range of assets. subsidiary of Shell. The differential versus a lot of “Together, we can current management team acquisitions we see in this offer more stays in place and we can space. Shell is letting [the choices focus on ensuring the energy acquired companies] operate to our future we want to build comes in their own way without customers EDF and Upside to trade lex from Anesco’s Clayhill solar-storage farm EDF Energy and technology partner Upside Energy will trade the power from Anesco’s 16MW Clayhill solar-storage farm. Terms of the deal include EDF providing a loor price for the storage aspect, and the site’s output will be bid into wholesale markets as well as contracted to grid operators. EDF said it will now bring more of Anesco’s assets into its PowerShift demand-side response platform. Anesco has completed 100MW of battery projects to date and aims to have 380MW on line by the end of next year. theenergyst.com April/May 2019 39 THE ENERGYST EVENT Don’t miss The Energyst Event Be sure to register for your free ticket to The Energyst’s lagship conference and exhibition, being held on 12 May at the Motorcycle Museum, Birmingham

he Energyst Event sustainability is a distraction returns on 1-2 from progress, it is bound to May 2019 – and be lively. And with so many T this year delegates delegates from different can expect an even bigger, backgrounds in attendance, and better, event. it will be interesting to gain Here’s what we have some different perspectives got lined up… on the common challenges facing business energy users. Hear from the experts As the way we use energy Learn something new evolves and new technologies There will also be emerge, it can be difficult for opportunities to get involved businesses to know whether Have your say in our workshops, which they are taking the optimum We also have an official Earn CPD points are focused on boosting approach to managing their ‘fringe’ event, icon’s by attending skills and promoting best energy. That is why this Unconference (see box), which practice in the areas that year we will be focusing on we have created with the All of our conference are typically challenging energy convergence: how goal of igniting passion back sessions are CPD certi ied, for energy professionals. energy is converging across into utilities education. The which means attendees We know that compliance is efficiency, sustainability, Unconference will comprise can accrue CPD points a complex area for many, for procurement and flexibility. a serious of TED-style talks and demonstrate that example, so energy analysis they are continuing their The conferences in our from industry insiders, expert Vilnas Vesma will professional development Energy Convergence theatre alongside workshops and be running two three-hour by attending The Energyst will tackle the big questions debates designed to address Event. masterclasses on the critical businesses have about energy managers’ and aspects of energy reporting. creating a future-proof energy We will also be looking at strategy, from deciding how to improve softer skills on the best procurement buyers’ primary concerns. in our Confidence Building approach in a volatile In these sessions, we are workshop, which will focus market to how to make the giving energy professionals on engaging senior colleagues most of new technologies an open platform to share in energy management. like onsite generation their views, challenges and A number of not-to-be- and energy storage. We will tackle opinions – within the context missed reports will also be With speakers from key the big questions of utilities management, launching at the event, and players within the industry, we businesses have no topic is off-limits. delegates will also have the are certain that everyone will With some controversial opportunity to speak to the take away some useful insights about creating a debates around whether experts behind the research. they can use to inform the way future-proof energy businesses really need Energy consultant Inenco they manage their energy. strategy energy brokers and whether will launch a new report,

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40 April/May 2019 theenergyst.com Does energy reporting really adoption and installation of deliver carbon savings? (see The ‘Unconference’ hosted by Icon EV charging infrastructure p42), which focuses on through smart charging and business attitudes to energy The industrial and commercial operators network (Icon) vehicle-to-grid services. reporting, while Engie will is running a fringe event, or ‘Unconference’ alongside The Andy Kershaw of Marston’s consider our low carbon Energyst’s programme. The idea is to spark debate and will outline the pub chain’s future in ‘How realistic are interaction in a less formal format. Sessions include: charging rollout, Peter White ambitions of zero-carbon?’. of Western Power Distribution - This house believes that we don’t need an energy broker We will also be launching will provide a DNO’s - The signi icance of Signi icant Code Reviews our own report into perspective, Filippo Gaddo - Demystifying DSR businesses’ attitudes to - How to read an energy bill of Arup will outline some of electric vehicles – Powershift: - Calculating RoI on energy e iciency the key challenges ahead and The impact of EVs on your Chris Rimmer of Cenex will energy strategy – and we “Within the context of utilities management, no topic is deliver insight and data from are welcoming delegates to o f-limits. We are here to ignite passion back into utilities its vehicle-to-grid trials. discuss our findings with education,” says Icon director Georgina Penfold. Free copies of the Energyst’s us at The Energyst Event. “With market insecurity, socio-political factors and rapid new 2019 EV Report technological development strongly impacting businesses, will also be available. this theatre addresses energy managers’ and buyers’ Seminar primary concerns through keynote TED-style talks, targeted Onsite generation, workshops, plenty of debates and top-level discussion.” lexibility and storage highlights Sessions around onsite generation storage and Energy outlook: The impact by energy companies flexibility will be held on both of incoming change Energy and system operators. days, with speakers from EDF How the shifting policy Energy, Ylem, Piclo, Scottish and regulatory landscape reporting 2019: The year of the PPA & Southern Energy Networks will affect your energy masterclasses Power purchase agreements and ABB detailing the latest strategy across consumption, appear to be coming of age; developments, challenges and generation and flexibility. Energy benchmarking and are buyers and sellers on the opportunities for businesses performance indicators Paul Sheffield, Haven Power; same page; and what are seeking to make investments have come to the fore Rob Williams, BT; Caroline the emerging opportunities in generation and storage this year thanks to Bragg, the ADE; and Kyle requirements in SECR, to lock in clean power? deliver best bang for buck. Martin, of LCP outline ESOS and ISO50001, James Brabben of Cornwall what’s coming down the which between them Insight and Chris Bowden With the event fast track and how businesses cover a large proportion of Squeaky Clean Energy approaching, now is the can prepare for the future. of signi icant energy users. will share their insight, time to ensure that you At The Energyst Event, while Anthony Browne of have secured your place. Energy e iciency rebooted energy analysis expert Northumbrian Water will Whether you are looking to Tesco group head of energy Vilnis Vesma will hold two explain how the water company network with your peers or Brian Cairns will detail what’s three-hour masterclasses is making PPAs a key part of pick up some tips on how working for the retailer and covering these critical its broader energy strategy. to reine your energy how to deliver efficiency aspects of energy reporting strategy, you won’t want through better use of data. (priced at £75). Details can The impact of EVs on to miss this event – so secure be found via links at EnergyPro’s Steve Fawkes your energy strategy your free ticket today. www.vesma.com/training. will look at how to take Electric vehicles will energy efficiency even further significantly impact energy For full details and by creating a tradeable strategies. This session covers to register visit: resource that can be procured the roadmap from early theenergystevent.com

Register for your free ticket at theenergystevent.com theenergyst.com April/May 2019 41 THE ENERGYST EVENT Energy and carbon reporting: Compliance is not enough Businesses can unlock genuine bene it by going beyond the compliance aspect of compliance schemes. Tim McManan-Smith highlights key indings of a new report that will be discussed at The Energyst Event, 12 May, Birmingham

nergy reporting is back in the spotlight in 2019, with the Enew Streamlined Energy and Carbon Reporting (SECR) framework launched The bene its of in April and Phase 2 of the the reporting are Energy Savings Opportunity only realised when Scheme (Esos) concluding organisations utilise in December. However, new insight reveals that not the data and turn all businesses are turning it into insight and data and insight into actions energy saving actions. Energy consultancy Inenco, alongside The Energyst be more energy effi cient, and Energy Institute, has there is inertia regarding conducted a survey looking its implementation. Esos at business attitudes to Phase 1 was viewed by 61% energy and carbon reporting. of respondents as not being Does energy reporting really worth it. Correspondingly, the deliver carbon savings? found same number of respondents that more than eight in 10 has not acted on their Phase respondents view CSR as 1 recommendations. Which increasingly important or have may explain to some extent already embedded it within why it was not worth it. their business. Yet at the same The audits needed for Esos time six in 10 found Esos take time and money and the Phase 1 a waste of time and return is only realised when the about half are unprepared for energy saving opportunities phase 2 or fully understand the identifi ed are acted upon. requirements of the SECR, a with 82% of respondents it. So it seems the message framework which is now live. saying energy reporting has for better managing how we Tick box exercise or Compliance schemes do either raised the profi le of use energy is understood. opportunity? seem to have had a positive energy effi ciency or that the However, despite this Despite the new framework effect regarding awareness, organisation already prioritised appreciation of the need to being ‘streamlined’, business

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42 April/May 2019 theenergyst.com energy professionals have survey show that nearly borne a growing reporting two thirds of businesses burden in the past five years. have not capitalised on the This has presented challenges opportunities made available from resource constraints to to them through Esos Phase 1, accessing the data required to undoubtedly impacting their submit into various schemes. cost base and competitiveness. Bogged down in paperwork, It is also concerning that and disheartened by a lack of 54% of businesses have meaningful outcome, it can not yet commenced their be easy to lose sight of the Phase 2 assessments. bigger picture. Done correctly “Businesses should really and actioned, data and energy utilise their energy compliance saving opportunities identified work to rethink how they can by energy reporting provide cut energy costs and improve businesses with a wealth of their competitiveness,” says Zu. insight to not only reduce To help businesses drive carbon emissions but also cut action from their audits, the costs and deliver a significant report provides insight and boost to both CSR credentials advice based on 320 Esos Phase and, crucially, the bottom line. 1 audits conducted by Inenco. “Businesses are mistaken For those looking to gain a if they pigeonhole legal deeper understanding of energy reporting obligations such saving opportunities and the as Esos and SECR as a changing framework for energy compliance issue. They’re and carbon reporting, we think about opportunity,” comments this is essential reading. te Energy Institute external affairs director Nick Turton. Download Does energy Those engaged in Esos reporting really deliver Phase 2 should therefore carbon savings? at: redouble efforts to emphasise inenco.com/esos-report the opportunity aspect, according to Inenco’s Esos To understand why Solutions Programme Leader businesses might be inhibited Rui Zu. Robust, accurate from acting on their report data should help encourage recommendations, Inenco, meaningful action, he suggests. The Energyst and Energy Institute surveyed energy “Energy reporting is the professionals in businesses foundation for compliance, a fected by Esos and SECR by offering businesses a during February/March 2019. true picture of their energy consumption, costs and The report’s indings will carbon emissions. However, be discussed in a dedicated the benefits of the reporting session, ‘From tick box to are only realised when toolbox’ at The Energyst organisations utilise the Event on 2 May. Speakers data and turn it into insight will outline optimal and actions,” says Zu. approaches to energy “The results of this reporting compliance.

theenergyst.com BEHAVIOUR CHANGE Small changes add up to big savings Eon and Savills ran a month-long experiment to see how behavioural ‘nudges’ could complement a building management system. The Energyst inds out how they fared

on and the Cardiff businesses making the most of office of global real their energy needs but, from estate adviser Savills an efficiency perspective, it’s E have come together to 26% often the case that the first run an innovative behavioural Reduction in Savills energy step is making sure you’ve science experiment, to test consumption using behavioural eliminated waste and you are how businesses can encourage operating efficiently. That’s their employees to do their bit science-inspired ‘nudges’ to why we’re really excited to and reduce their energy use. prompt responsible energy have come together with a These small and unobtrusive behaviours forward-thinking organisation changes had little or no like Savills on this experiment impact on day-to-day business and show there are activities but saw energy use improvements that can still fall by an impressive 26%. not be controlled by staff, be made, even in a modern Challenge The four-week experiment the experiment offered an and well-managed office. colleagues to set in the city centre office opportunity to explore other “These fantastic results clear goals and revolved around Savills ways that a business can save prove that behavioural commit to them, employees, comparing the energy and the important science is a powerful tool, suggests Eon behaviour of two sides of the contribution individual with small changes able to office: one with a series of employees can play. make a big impact on office behavioural science-inspired Anna Kuzniar, associate running costs. I look forward of text, depending on ‘nudges’ to prompt responsible director at Savills Energy, to helping more of our what works best for your energy behaviours; the other says: “The results at the end customers use these learnings office environment. running as a control group of the four weeks show we can to save energy and money.” • Appoint energy without any interventions, all do more to save energy. For businesses looking to ambassadors to keep to monitor energy use We’ll use the results to support replicate the effects of the colleagues motivated and over the same period. our own sustainability targets, experiment, there are a few on track. One task includes Nudges are small and to inform our advice to simple changes that you can checking everyone has interventions designed to clients. With energy prices make to help see reductions switched off their computer prompt people into a different at an all-time high we know in your energy cost: monitors at night, leaving pattern of behaviour, such that reducing consumption • Install prompts across the red and green stickers as switching a light off that can make a real difference to office, to remind employees to indicate who has and they may have left on. These a company’s bottom line, as to use less energy – for hasn’t remembered. This make use of behaviour change well as to its carbon footprint.” example, above light encourages people to techniques to guide employees Phil Gilbert, director switches and printers, to compare themselves to other into more sustainable of customer solutions at remind users to switch colleagues and uses social choices – for example habit Eon, adds: “Large-scale them off when not in use. norms theory, which shows formation and creating social technologies and smart These can range from fun that sustainable behaviour norms where individuals systems often get all the engaging stickers, through can be encouraged change their behaviour to attention when it comes to to small and simple pieces in environments (for fit in with the group. example, work offices) Given that Savills office where individuals don’t already has its own building Behavioural science is a typically have these habits. management system in powerful tool, with small • Give regular feedback on place with energy efficiency how staff are doing and measures such as pre-set changes able to make a big giving them a comparison timers for lighting that could impact on o ice running costs – for example, to other

44 April/May 2019 theenergyst.com The science behind the experiment At the core of this experiment, Eon and Savills were looking to test how a range of behavioural science theories can be used to change employees’ habits and help reduce energy use – from switching o f computer monitors and printers at night, to turning o f lights and leaving the o ice thermostats alone. The set-up of Savills’ Cardi f o ice proved ideal for the experiment. Each side of the o ice parts of the business or has its own energy meter, which made it easy to directly compare the impact that small and similar businesses. This low-cost nudges can have on the company’S energy use at work, as well as the inancial maintains momentum as savings to the business, compared with a control group with no nudges installed. well as encouraging a bit The nudges used varied from simple stickers above light switches prompting people to turn of healthy competition. them o f, text above heating controls guiding employees to keep it within an advised range, • Encourage goal-setting to goal-setting ‘contacts’ and assigned energy ambassadors to keep people accountable. The nudges installed were all subtle and low cost to produce, costing less than £50. The experiment by challenging colleagues was designed and delivered by a team of behavioural science experts from H+K Strategies. with clear goals to commit to. This takes advantage The results of the fact that we seek As a result of these nudges, the experiment saw signi icant reductions in the energy use, with the to be consistent with amount used for sockets and lighting falling by 4%. Meanwhile, with the experiment taking place in our public and personal the colder autumn months, energy use for heating in both halves of the o ice saw a rise. However, 1 promises that we make. while the control nearly doubled its usage, the experiment group only rose by a quarter. • Change your default This resulted in a total saving of 26% in energy use for the half of the o ice undertaking the experiment. When applied to the entire o ice, over the course of a year, this represents an settings, for example on energy saving big enough to run an o ice of 81 laptops for eight hours a day for a year.2 office thermostats. We all These igures are signi icant when compared with other similar experiments to reduce know that heating in the energy use, which typically achieve 35% decreases. For example, a programme undertaken office can be a contentious in the US using letters comparing consumers’ energy use wi other households saw just a 2% issue, however our human reduction in energy.3 Moreover, when considering the fact that the Savills o ice used for the nature is to go with the flow experiment already had a building management system, this experiment demonstrates the and stick to pre-set options. powerful role behavioural science has to play in energy saving. Change the temperature 1. Energy use for heating in the control group increased by 90%. The experiment group rose 26% to be within a seasonally 2. When applied to the whole o ice, annual energy reduction found in the experiment group would be equivalent to a appropriate range and 12,120kWh saving. Based on dividing this igure by a 0.225 kWh average energy use to boil a kettle (source) and a 225kWh provide a prompt above the average energy use to run a laptop for eight hours a day for a year (source). Year is based on a working year of 250 days thermostat to remind people 3. Source: Journal of Public Economics to keep within this. te

theenergyst.com April/May 2019 45 BEHAVIOUR CHANGE

Unlocking energy e iciency starts with people power Turning energy into something that is of interest to the people who work in or visit the buildings is where success often lies, writes Carbon Credentials founder Ciaran Duggan

n the surface, But fast forward 10 years aligned to carbon reductions. unlocking energy and only 3-5% of buildings In the same research, efficiency or are as energy efficient as they competing business priorities O bridging the energy can practically be, based on was reported as the biggest performance gap between the analytics of our ADAPt challenge in delivering a what a building was designed data warehouse, run on over sustainability programme. to cost versus what it actually 43,000 buildings globally. costs in utilities seems like an Many organisations continue Lack of take-up easy win-win. Who wants to 57% to struggle to unlock energy So, what is going on? Why are spend more on electricity and said their employer is not efficiency and few involve so few companies embracing gas than is absolutely needed? involving them enough in their employees – many of ways to drive sustainable In 2009, in the wake of the cutting carbon emissions whom are keen to help. change? Why, when ever financial crash, organisations Last year we ran a research more large and mid-sized worldwide scrambled to reduce study, the ‘Carbon Commitment companies want to portray spend. As energy prices rose, report’, based on the views of themselves as good corporate many focused on the costs of 2,000 employees, managers citizens and regulation and electricity and gas. So, when and, more specifically, heads reporting frameworks continue I started Carbon Credentials 66% of sustainability, energy and to spring up such as the nearly 10 years ago, it seemed would support a bonus facilities managers. Some SECR, TCFD and ESOS? this strong desire to cut costs 57% of employees said their There are two reasons for together with energy efficiency incentive scheme that aligned employer is not involving them this – both related to people. projects – with many offering to carbon reductions enough in cutting their carbon Firstly, building energy and clear sub three or sub five year emissions; 71% have taken their control systems are complex. paybacks – was a ‘no brainer’. own action to cut their carbon Often there are lots of different And I predicted that within footprint at work in the past six individuals and companies five years the UK would be as months and 66% would support involved in the provision of energy efficient as possible. a bonus incentive scheme that the things needed for people

46 April/May 2019 theenergyst.com related to overheating and interest to the people who overcooling of spaces. work in or visit the buildings Secondly, the staff who is where success often lies. ultimately experience (or This is working for many suffer) the conditions clients – for example, at within the buildings are Village Hotel Club we relate rarely engaged and involved the energy and sustainability with the process of making programmes back to the key offices, hotels, leisure centres, business priorities of filling universities and retail spaces bedrooms, enabling pleasant more comfortable and efficient. public spaces for gathering and dining, and providing excellent Overcoming conundrum leisure and corporate meeting Data and visual analytics are facilities. As a result, our the glue to bringing together measurement and verification the multiple technical people process showed that in who impact energy efficiency By engaging December last year, we have and staff/guest comfort. employees from saved Village more than £1m Creating and communicating top down, energy in energy cost savings since ‘one version of the truth’ 2017. For this to be an ongoing and showing what the savings can be success, the programmes we building is actually doing quickly and cost initiated are now embedded versus what people think it e ectively unlocked and owned by the staff at its is doing is step one towards Ciaran Duggan, 30 hotels across the UK. a more efficient building. When this works well, Carbon Credentials A true win-win By engaging employees from top down, energy savings can be quickly and cost effectively unlocked. And it is a true win-win; staff feel better and more engaged, the board can point to a great news story of how they have implemented a successful energy and cost reduction programme, and as a society we nudge towards a global lower carbon economy. Where to start, strategically or tactically? Strategically, The programmes Carbon Credientials initiated at Village Hotel Club are now owned by sta f create a target, ideally a science based one. Our study found to work effectively and significant positive results vast majority. The energy cost that only 10% of organisations productively in buildings: fresh and impact are achieved. For savings, while significant in had a carbon reduction target. air, heating, cooling, lighting example, we have worked percentage terms, are often If you are not measuring it, you and ancillary services such as with the Jockey Club for a not big enough to excite the are unlikely to be managing it. lifts, escalators and canteens. number of years, gathering majority of employees and Tactically, gather data, This wide and disparate data, analysing it, creating board members. Sixty per cent analyse it and start on a quick group of people rarely interesting infographic aids of the heads and managers of win ‘halo’ project to start collaborate, and traditionally and then engaging with sustainability, environment winning hearts and minds in only see their piece of the the staff across its many and energy interviewed the boiler room and boardroom puzzle, rather than the racecourses. The result is said a lack of leadership and everyone in between. 2019 holistic view of the building. engaged and enthusiastic support was a top barrier to is predicted to be the ‘Year Technical staff, managing staff – and more than £1.5m implementing sustainable of the Smart Building’, and agents, facilities managers in cost savings since the change programmes. with Smart Building Solutions and energy managers are programme began in 2014. Building utilities are now very cost effective and often overworked, underpaid The challenge is also how often just 1% of a company’s easy to install, this approach and spend most of the time to make energy interesting costs, while staff and payroll will be attractive for many firefighting to respond to the wider workforce. For costs are often closer to building managers. It is to urgent calls – with most, energy is boring. It is 90% of an organisation’s certainly where many of our the number one and two inaccessible, kWh or tCO2 expenses. Turning energy clients are putting their time complaints by volume being are just not engaging for the into something that is of and energy this year. te theenergyst.com April/May 2019 47 LIGHTING

Smart lighting via smartphone A lighting control solution that enables the maintenance team to control it via a smartphone app is saving energy at The Dyson School of Design Engineering

he Dyson School of and that it could be controlled is achieved mainly for the “We solved this by using Design Engineering to reduce lighting levels when light fi ttings adjacent to the their sensor with a DALI and at Imperial College, the natural daylight was windows. For these areas, switching output. This sensor TLondon (ICL), was brighter. For the laboratories, the BEG DAA4G Occupancy was also used in the toilet established with a £12m we used DALI photocells Sensor was deployed as it can areas where the lighting and donation from the James instead of occupancy sensors.” be programmed so that the the extraction fans required Dyson Foundation. Greenrod continues: “Areas window luminaires are dimmed occupancy control. The DALI BEG Lighting Controls was such as the corridors, stairwell, by 25% to the main room. would control the luminaires selected by ICL to provide a toilets and store rooms do not If the sensor’s photocell and monitor any natural daylight user-friendly system that can need to be fully lit and lighting detects any change in the level of whereas the fan was controlled be maintained by its own only needs to be switched on once natural daylight, all luminaires independently and worked on maintenance department our occupancy sensors detect will adjust accordingly. This occupancy detection only. and meet the lighting control there is a person in the room. It sensor is specifi cally used in the “A feature of the DALI master standards required by the is in these areas, naturally, that teaching rooms, where up to four detector is the orientation setting research university. the most energy consumption lighting zones can be set – and where the lights can be set to 20% The lighting controls could be saved so it was vitally it can be programmed using a once an area is unoccupied. This manufacturer worked with important we selected the right smart phone and BEG Lighting function is used in the circulation mechanical and electrical products for these areas.” Controls app, as can all of the areas so that some illumination consultant Buro Happold. He says using a range of BEG DALI sensors used on the project. is provided at all times – a useful ICL’s main criteria were DALI Broadcast Occupancy The only mains fi tting comfort and safety feature.” energy and cost savings and Sensors enabled a suitable on the project was a feature In laboratories, occupancy maximising natural daylight. sensor to be installed in all chandelier in the main sensors were not required BEG Lighting Controls and Buro sections of the building. stairwell. “This needed to as ICL wanted to avoid the Happold worked on the layout of The luminaires selected on be controlled by occupancy possibility of lights turning the lighting as well as the level of the project are DALI dimmable sensors together with the DALI off, which could be considered light and type of control across and daylight harvesting luminaires,” says Greenrod. unsafe depending on the teaching rooms, laboratories, type of experimental work offi ces, corridors, stairwells, being carried out. In these toilets and store rooms. rooms, the BEG DALI “The design brief from ICL photocell is used to control meant we had to carefully specify the window row of luminaires lighting controls products for to enable energy saving. each area, which differed greatly Greenrod says he appreciated from room to room, so this the onsite meetings and was by no means a ‘one size technical support prior to fi rst fi ts all’ solution,” explains Tom fi xing, which helped ensure Greenrod, specifi cation director the wiring philosophy was at BEG Lighting Controls. understood for each type of “It was imperative that the sensor deployed on the project. lighting was mostly switched “These meetings ensured that on in the offi ces and teaching ICL’s main criteria were energy and cost savings and maximising a smooth trouble-free installation rooms during working hours natural daylight was achieved,” says Greenrod. te

48 April/May 2019 theenergyst.com

LIGHTING

Eon will provide connected lighting and occupancy mapping as the building’s initial stage of ‘smartness’.

Eon makes smart move Energy irm strikes connected lighting deal with enModus

on has struck a to expand into Europe. provide connected lighting deal with smart “They [Eon] have a vision and occupancy mapping buildings solutions of transforming yesterday’s as the building’s initial E company enModus. power lines into tomorrow’s stage of ‘smartness’. The energy company’s smart energy networks and Other smart technologies Connected Energies division enModus has Wattwave – Eon has a vision will be added to improve will now deliver smart lighting our patented power line energy efficiency and services using the Chepstow- communications technology of transforming occupant wellbeing. based firm’s technology. – to deliver that connectivity.” yesterday’s The deal with enModus, EnModus says it can make Garance Emmerich- power lines into whose technology is primarily any building smart. The Bundel, head of product tomorrow’s smart aimed at B2B customers, company uses power line management and engineering follows Eon’s UK launch of communications instead at Eon Connecting Energies, energy networks ... its smart home solution. of wifi and has claimed says: “The agreement We can deliver that The energy company some massive savings for with enModus gives us the connectivity aims to deploy connected companies such as Virgin opportunity to offer our lighting, power and heating Media and retailer Claire’s customers new solutions that that is controlled by a ‘virtual in recent months. drive energy efficiency and home assistant’ capable EnModus CEO and reduced carbon emissions.” of learning inhabitants’ co-founder Andy Heaton Eon has already installed habits, for example says the deal with Eon was the technology at its anticipating when they will “momentous” for the company research centre in Aachen, return home and adjusting and would enable enModus Germany, where it will heating accordingly. te

50 April/May 2019 theenergyst.com

SMART BUILDINGS

electrical equipment, you Data analysis can also ensure maintenance and servicing interventions are timed appropriately and efficiently. For example, rather unlocks energy than simply changing air filters every month, you can do so when the data indicates savings that new filters are needed. Similarly, if any fault is identified, engineers can be directed straight to the problem with an indication of the type of fault, so that interventions can be more effectively targeted. These insights into the condition and efficiency of your assets help to prevent wasted time and effort for your engineering and maintenance teams.

Informing investment A smart building starts with a single view of data, enabling greater If you want to invest in asset e iciency, more e fective maintenance and underpinning more energy-efficient plant, equipment or systems, investment decisions, says James Spires, managing director of Smart accurate, integrated data Buildings at Engie from your smart building system provides the required evidence. Once investments or reating smart clearer picture of when and to easily identify anomalies operational changes are made, buildings that where energy is consumed or unexpected usage and the same data can be used to control and regulate in your building. But more take appropriate action. By immediately demonstrate the C their energy and than that, you will gain a enabling you to take targeted impact on energy consumption. operational systems to provide clear understanding of the actions, such as improving Real-time data also helps comfortable, efficient, high- relationships between different controls, utilising Internet fine tune and adapt any performance environments is activities and assets in your of Things (IOT) devices, changes to achieve optimum the ultimate objective for most building, so you can see how modifying equipment set- efficiencies. Over the longer energy and facilities managers. data in one area is influenced points and schedules, smart term, the data can also be Smart building solutions by activities in another. building data helps you to used to measure and report allow you to optimise the significantly improve efficiency return on investment. performance of building Harmonise assets and reduce consumption. systems, eliminate wasted These insights offer myriad If you combine this with Connect your data energy, increase productivity potential benefits for your the use of automated digital Connected data is the critical and improve occupant business. Firstly, they allow control solutions, you enabler for effective smart comfort and wellbeing. you to see whether assets can further optimise the building systems – and are working in harmony performance of systems and targeted energy-efficiency Understand consumption or in conflict. For example, improve building operations programmes. By connecting The first step towards creating are heating and cooling and efficiency. For example, data via a single intelligent an energy-efficient smart systems fighting against each by linking lighting to daylight analytics platform, you can building is to connect all of other to achieve different sensors, lights can be dimmed ensure that operational the data produced by your temperatures in certain areas automatically when there changes and capital building’s systems, technology of your building? This can is sufficient natural light. investments designed to and sensors. This can include waste a huge amount of Similarly, movement sensors improve energy efficiency are data on utility consumption, energy, and simply unifying can be used to ensure lights are based on a clear understanding air temperature, humidity, HVAC temperature settings not left on in unoccupied areas. of how your building really space utilisation, weather in each area will lead to works. That will enable you to conditions, production output, immediate energy savings. Maintenance e iciencies manage your building more air quality and much more. By monitoring data from key efficiently and effectively By collating this data Take control assets such as air-handling to achieve cost, energy and and analysing it on a single Using the data from your smart units, pumps, chillers and resource savings, and to extend platform, you will get a building systems enables you other mechanical and the life of your assets. te

52 April/May 2019 theenergyst.com Siemens claims ‘digital- and competitiveness perspective as-a-service’ will de-risk Boortmalt is totally committed to delivering value to customers. productivity investment We think we can make a and cut costs at great product and improve our productivity at the same Boortmalt Group time, so it’s a win-win.” He adds that Siemens iemens Digital Industries “de-risked financing capital has signed a contract investment model means Swith Boortmalt Group, we can achieve Boortmalt’s one of the world’s largest malt sustainability strategy manufacturers. The ‘digital- with confidence”. as-a-service’ programme is Brian Holliday, managing designed to reduce costs by up director, Siemens Digital to 30% across its business. Smart approach Industries, says: “We employ Starting at Boortmalts’ Malton a range of investigative and facility in North Yorkshire, before digital tools to work with potentially being rolled out to cost cutting our customers and have across other Boortmalt sites, the found that manufacturers plan will see Siemens conduct produces >50k MT of malt every and boosting productivity. like Boortmalt can achieve an audit of the Malton plant. year and exports its speciality Siemens is also working productivity improvement and This will include the analysis malt products across the world. towards a range of targets and reduced cost while lowering of its utility consumption, Boormalt has ambitions to said the deal is underpinned their carbon footprint when raw material usage, machine reduce its water consumption by by a tailored commercial we co-create solutions.” performance and production 50% between 2010 and 2025 as model that de-risks financial Siemens Digital Industries is processes which are key well as reduce carbon emissions performance metrics. working on similar productivity cost areas in the large-scale by 60% between 2010 and 2030. Boortmalt chief operating programmes in the UK with manufacture of malt. Both targets will be reached by officer Peter Nallen says: “From companies including Pilkington The North Yorkshire site deploying state of the art tech a commercial, environmental Glass, Kingspan and Encirc. te HVAC

eisure centres are A Remeha RGen 2044kWe CHP a major source unit, working in conjunction of energy use, with three Remeha Gas 310 L with energy costs Eco Pro condensing boilers, is accounting for as much as generating lower carbon heat 30% of total operational and power at Penrith Leisure costs, second only to the Centre cost of labour. So how to go about making leisure radiators, fan convectors, air centre businesses more handling units, providing hot energy efficient without water for shower facilities minimising comfort levels and, of course, heating the and visitor satisfaction? two swimming pools.” The government has Effective maintenance is also identified heat as a natural key. “A CHP unit is a specialist target for improvement. piece of plant,” Clarkson adds. Certainly, heating and hot “For us, it was important to water provision accounts for a install a unit that was not only large proportion of energy bills sized correctly for maximum in leisure centres, particularly Pooling run time, but that there was in complexes with swimming a service programme offered pools. With large volumes of that would keep the CHP water that must be continuously operating at its optimum. heated, swimming pools the savings “Servicing the CHP allows typically use five times as much the engineer to monitor the energy per square metre as multiple moving parts and offices, according to CIBSE. electrical components, identify Electricity usage is also with CHP any wear and tear and react high, especially in centres quickly to any issues,” he that use it extensively for air Leisure operators use a lot of energy heating continues. “That way, the CHP conditioning, ventilation, swimming pools and showers as well as powering continues to produce electricity lighting, fans and pumps. and heat to the building.” Due to its ability to generate air conditioning, pumps and fans. Their pro ile As an estimated 85% of lower-cost electricity and really suits combined heat and power, says reported CHP faults can be heat simultaneously onsite, Remeha technical manager Mike He ford corrected and reset remotely, this is where combined heat remote monitoring is an and power (CHP) can deliver important component of benefits. But to generate perfectly suited for CHP. Mechanical and electrical the service programme. maximum returns, the CHP The centre had previously engineer Thomas Armstrong “If the unit has stopped needs to run for long periods been heated by a turbine CHP, recommended replacing the working, is in alarm, or of time during the day. boilers and water heaters, old plant with a Remeha the performance drops for How to achieve this? Firstly, but the unit was oversized 20/44kW ultra-low R-Gen any reason, this is picked check that the demand is there; and failed to achieve the condensing CHP unit up within hours and action secondly, avoid oversizing; anticipated performance levels, operating in conjunction is taken to rectify the and thirdly, consider savings and life expectancy. with three Remeha Gas problem without prolonged long-term maintenance When replacing the existing 310 Eco Pro high efficiency downtime,” says Clarkson. options from the outset. plant, EDC’s requirements condensing boilers to meet Providing a good example were to implement a new the project requirements. Long-term bene its of CHP best practice is the high-efficiency renewable Initial data from the council installation at Penrith Leisure or low-carbon solution that Maximum bene its indicates impressive total Centre in Eden, owned by would improve the centre’s Accurately sizing the CHP primary energy savings in the Eden District Council (EDC) energy performance, reduce unit is critical to maximise region of 35%. The findings and operated by GLL emissions and increase the energy and carbon saving compare energy use in the operational efficiency. benefits – as a result, the CHP second half of 2017 with Constant demands has been running non-stop. the same period in 2018, In addition to a state-of-the- “The CHP produces 44kW after the installation of the art gym, studios and a sports of heat per hour and it’s using new CHP unit. Factor in the hall, Penrith Leisure Centre it all, even says the summer spark spread – the difference has a 25-metre swimming months,” says Thomas between gas and electricity pool and 13-metre studio pool. 35% Armstrong’s Stephen Clarkson. costs – and this will translate Because it is open almost Primary energy savings at “It’s heating the constant to substantial cost savings every day of the year, it is Penrith Leisure Centre temperature circuit, feeding for the council and GLL te

54 April/May 2019 theenergyst.com LEEF old heat problems behind you

efficient boilers and a low Trevor Fitzgerald, director of NOx Combined Heat and Estates, Facilities and Capital Power (CHP) plant will reduce Projects at Epsom & St Helier ongoing operating costs. University NHS Trust, says: Steam systems throughout “The programme of works the hospital will also be will bring significant energy replaced by easier to maintain saving investments to the low temperature hot water Trust’s estate, allowing it to piping. Lighting, control greatly reduce its CO2 emissions systems and heating, ventilation and energy consumption.” and air conditioning systems Shirley Rodrigues, deputy will also be replaced or mayor for Environment upgraded, creating a safer, and Energy, says: “St Helier well equipped environment University Hospital is leading which promotes the wellbeing by example. This is expected of staff and patients. Leveraging London’s s part of the mayor On the Epsom site, the energy e iciency of London’s RE:FIT hospital is undergoing a funds and an energy programme, energy significant transformation with Aservices firm Breathe the relocation of core energy performance contract, is working in partnership with services to accommodate a Epsom and St Helier Epsom and St Helier University land sale. The project will see Hospitals NHS Trust on a a new high efficiency central University Hospital programme of retrofitting works boiler plant, a new combined NHS Trust is set to save that will significantly reduce heat and power plant plus a energy costs and CO emissions. new standby generator installed £1m a year and slash 2 Breathe will provide a Following a fabric in a novel design intended to long-term performance improvement programme minimise spatial requirements carbon emissions guarantee to ensure the completed in February this for this new equipment and year, Breathe is also delivering maximise the space available investment made by the critical infrastructure upgrade across the site. The lighting trust is underpinned by schemes at both hospitals. systems throughout the hospital energy savings The majority of the project will also be upgraded, providing finance comes via from the a higher quality environment to save £1m a year from London Energy Efficiency Fund for patients and staff. energy bills and reduce carbon (LEEF) and the new mayor As part of the RE:FIT emissions by 27%. The mayor of London’s Energy Efficiency programme Breathe and I want to see other NHS fund (MEEF), both managed will provide a long-term trusts in the capital take by Amber Infrastructure. performance guarantee to advantage of RE:FIT and On the St Helier site, the ensure the investment made MEEF and help London on steam central boiler plant will by the trust is underpinned the path to becoming a zero be replaced by new energy by energy savings. carbon city by 2050.” te PRODUCTS & SERVICES

CHP and EPC (CHP) plant under the contract, alongside variable save leisure speed drives, energy management system upgrades centre and new lighting, will also help cut carbon emissions An energy performance by 200 tonnes per annum. contract (EPC) across leisure The project, delivered via centres operated for Glasgow the Scottish Non-Domestic City Council will reduce Energy Efficiency framework, bills by six figures per year. will also improve resilience Veolia’s agreement with at the Scotstoun, Gorbals and Glasgow Life, a charity that Bellahouston leisure centres. delivers leisure and learning Richard Kirkman, activities for the council, Veolia’s chief technology guarantees savings of more and innovation officer, said than £106,000 per year and EPCs have a “key role” in a reduction of 1.7GWh of enabling the public sector energy drawn from the grid. to become more sustainable Installing a 125kWe while improving services combined heat and power for local communities.

Insure against uncertainty from renewable development projects. permit It ensures the solvency of the developer during third challenges party challenges and, in the event of an unfavourable CLS Risk Solutions has final court order, it covers launched an insurance the capital investment into product that it says protects the project and financing against interruption to repayment obligations. renewable energy project “It’s an area of insurance that construction due to third is little known and even less party (judicial review) understood in the wider broker challenges to the permit. market – it has been a sleeping The company claims Permit giant in many respects,” Challenge Insurance creates said business development better investment opportunities director, Will Brooks. “The Emergency cold storage unit for lenders and removes growth potential is huge.”

Cold storage warehouses will avoiding installation fees. be able to immediately recover The units also allow for from breakdowns thanks to temporary cooling during Smart meters: Aggreko’s new temporary air planned shutdowns, allowing cooled low temperature AC units. the operation of the cold store SSE appoints Delivering 100kW of to continue while a fixed design cooling capacity at cooling installation is being SMS to do SMEs -22°C air outlet temperature, maintained or upgraded. SSE has signed Smart the machine is a plug and Other features of the Metering Systems (SMS) as play solution which is unit include Aggreko’s preferred national supplier to roll out 200,000 smart meters housed in a 20ft container. wireless temperature sensors to its small and medium-sized business customers (SMEs). Available as an air- or and built-in management The meters will be the fully smart variant, or Smets2 units. water-cooled machine, it can system, which controls the Glasgow-based SMS claims it manages some 2.8 million cool down existing cold stores temperature of the air. metering and data assets across the domestic and non- domestic sectors. to freezing temperatures as Aggreko’s access to “We are delighted to have built on our longstanding low as -40°C. Interference temporary power generators relationship with SSE to sign this new agreement in our well with any cold store warehouse also means warehouses can established commercial sector. We look forward to helping is minimised because the be supplied with enough SSE bring the bene its of smart metering technology to its Aggreko unit is installed energy if no electricity is small business customer base,” said CEO Alan Foy. outside, increasing safety and available from the grid.

56 April/May 2019 theenergyst.com

Q&A Caroline Bragg The Association for Decentralised Energy’s senior policy manager breaks cover to discuss prehistoric time travel, communications with with alien life forms and avoiding Piers Morgan

Who would you least like what their culture was like. If you were blessed with to share a lift with? Piers any talent, what would Morgan. For obvious reasons. Who or what are you your dream job be and enjoying listening to? why? Whisky tasting. You’re god for the day, what’s Janis Joplin. Happy but For obvious reasons. the irst thing you do? Walk pretty dark at the same up to Dawkins and say ‘hi. time and I love the sound What is the best of singing through chain- piece of advice If you could travel back smoked Marlboros. you’ve ever to any historical period been given? when would it be and What unsolved mystery It’ll all be alright. why? Prehistoric Orkney. would you like the answers

A couple of years ago, I got to? I recently read about the 20th Century Fox What irritates you to go there for a few days. Woah! signal. In the 1970s, I ‘Spy’: Energy policy is just a the most in life? For a small island, they have a telescope was looking for cover People who an incredible equivalent of radio signals from aliens. are selfi sh. Stonehenge, the Ring of Unexpectedly, they found Brodgar, the Tomb of the exactly the type of signal If you could perpetuate What should businesses that would be produced if a myth about be doing to help another planet was trying yourself, what themselves to send a signal to space. would it be? I’m energy-wise? They saw it once and never actually a spy. From where the saw it again. Some people Energy policy system is going, I now think it was comets. is just a cover. think businesses I would like to know for need to look at how sure, in case it really was What would they can manage an alien communication. your super their energy more power be and actively. That has What would you take to a why? Jumping the potential to desert island and why? downwards. help businesses Desalination kit, rum Seriously – fl ying. be more in control and a pirate hat. I love the idea of their energy The Tomb of the Eagles on Orkney

Kristel Jeuring on Flikr (Creative Commons) Flikr (Creative Jeuring on Kristel of being able to swoop. bills and earn more revenue What’s your favourite through their fl exibility. Eagles where eagles were ilm (or book) and why? What would you do with buried alongside the dead and First couple of books a million pounds? What’s the best thing – Maeshowe, a beautiful passage of The Hitchhiker’s Buy a canal boat… work wise – that you grave that was probably Guide to the Galaxy. a big canal boat. did recently? built around 2800 BC. The later books are less good I went to the National We have got the monuments – apart from the bit where What’s your greatest Grid Control Room. they left behind but Arthur Dent becomes a extravagance? Good They didn’t let me we do not know sandwich-maker because beer, and lots of it. touch anything! te that much about he needs to contribute what they believed somehow and doesn’t and how they lived. know how toasters or I went to the National Grid I would like to know digital watches work. Control Room.They didn’t I can relate. let me touch anything! Piers Morgan

58 April/May 2019 theenergyst.com