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There Is a Beis Office Focused on Getting the Big Six To theenergyst.com June/July 2017 New leaf: Nissan Storage wars: Triad raid: “There is a Beis ofice focused on 07 signals intent 30 Battery storage 44 Firms form getting the Big Six to invest. They to become energy to be overthrown by queue to condemn services business energy storage? regulator’s rate cut should all be fired. ” p28 INSIDE THIS ISSUE 50 HVAC Delivering high efficiencies 28 and outputs in the shrinking footprints of today’s plant is the Demand- challenge. Remeha thinks its side latest development addresses Response precisely that UK Power Reserve CEO Tim Emrich says incentivising large new gas 46 plant will drive up business bills and that the Big Lighting Six “dinosaurs” Making LEDS smarter – should be allowed Integrating controls into LED to die of natural lamps multiplies the energy market causes efficiencies 30 44 Policy & Energy Storage Legislation There are quick bucks to be Ofgem’s move to cut payments made from battery storage, but made to distribution connected in three or four years, many small generators is likely to assets will be in the bin, reckons push up prices and harm future redT chief Scott McGregor investment, says ESTA 20 Extending domestic Gas & price controls may Electricity Following Brexit and the leave SMEs as the election, what is in store squeezed middle for business energy users? theenergyst.com June/July 2017 New leaf: Nissan Storage wars: Triad raid: “There is a Beis ofice focused on 07 signals intent 30 Battery storage 44 Firms form getting the Big Six to invest. They to become energy to be overthrown by queue to condemn should all be fired. ” p28 06 24 services business energy storage? regulator’s rate cut News & Comment Gas & Electricity 14 Ofgem has confirmed that it will The big value is not in implement steep cuts to small mastering cyclical trends in generators’ Triad payments. energy purchasing but by This may provide a windfall taking control of your assets Front for the UK’s large thermal argues Gab Barbaro of British Cover generators Gas Business ??? News & Comment 4 Demand-side Response 26 HVAC 50 Insight 12 Policy & Legislation 36 Water Management 60 Certification 16 Behavioural Change 38 Product News 62 Gas & Electrcity 18 Lighting 46 Q&A 66 To subscribe please visit: theenergyst.com/subscribe theenergyst.com June/July 2017 3 COMMENT Focus not on the process but on the outcome The General Election has managed to normalise population in developing countries, from 43% to a kind of collective idiocy. The Tories, although 21% – a reduction of almost one billion people winning, managed to lose their majority and pledged to intervene in the energy market to cap prices. A However, both of the two major parties have a desire to strategy that they label ‘Marxist’ only a couple of interfere in markets, which inevitably involves picking year’s ago when Ed Miliband suggested it. Labour winners. Unless you are a clairvoyant this is a task at is moving to the left at a rapid rate with increased which you will fail. Far better to set the ground rules for taxation allied to a seeming lack of recognition as to a desired outcome and let the experts fi ght it out through where the prosperity that is to be taxed comes from. differing technologies grounded in economic reality. This is from aside from even mentioning privatising utilities, at what cost to the consumer and what You want the most energy saved, the largest effect on market development and innovation? amount of Carbon dioxide not emitted for the lowest cost. So focus on that outcome. You want the most energy Former National Grid boss and saved, the largest amount of Energy Institute vice president Carbon dioxide not emitted Steve Holliday is on the money for the lowest cost. So focus when calling energy effi ciency ‘the poor child of energy on that outcome policy’. He is also right in suggesting that in incentives for low carbon generation Tony Blair and David Cameron were to all intents and have been a huge success. purposes interchangeable and what has disappeared is the middle. The collapse of the neo-liberal consensus If you want to intervene has pushed us to one-nation Toryism and hard socialist in markets, make the idealism leaving the proven and effective tool of free policy coherent, market economics stranded. There may be a better way stable and durable. but no one seems to have come up with it yet. This Focus on outcomes hated symbol of bankers, markets and globalisation that best serve the has lifted poverty rates far better than any command intent at lowest cost. and control, economy. Between 1990 and 2010, people Or risk meddling in extreme poverty fell by half as a share of the total forever more. 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 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 June/July 2017 theenergyst.com NEWS & COMMENT declining transmission demand National Grid plots major (particularly in summer) means there is a greater need for absorption of reactive power. overhaul of balancing services Black Start contracts – given to power stations with the National Grid has outlined Transmission vamp: System capability to reboot the grid in the plans for a major overhaul of Operator to recast balancing unlikely event of failure – are also balancing services over five tools under review. Usually provided years. The system operator will by transmission-connected start with frequency response, generators, National Grid is pledging to have a new product mulling how to bring in more in market by next March. providers. In the short term there National Grid said it needs are contract opportunities from to procure faster frequency next year, it said. In the longer response closer to real time and term, it may be possible to bring wants views on its proposals. or demand. Programmes within will have new reserve products in distributed generation. Within the consultation, the this envelope include STOR in market by 2018/19, to The system operator wants system operator confirmed it and demand turn-up. National coincide with a standardised views on its new product does not plan another enhanced Grid also uses the balancing pan-European reserve service, strategy. It proposes four frequency response (EFR) mechanism (BM) to access Replacement Reserve (PR), going possible service ‘buckets’, tender. Routes to market reserve but said that because an live in 2019 under Project Terre, grouping existing services for batteries will instead increasing number of providers as well as new trading rules on to form deeper markets. be wrapped into the new in the BM are also providing interconnectors. Those rules National Grid said existing broader frequency envelope. frequency response – and can’t will facilitate interconnector contracts for affected services The consultation calls for use their capacity for both at the trading on an hourly basis, will not be cancelled, and industry feedback on how same time – reserve providers instead of three hours ahead successful tenders as well procurement processes might in the BM were dwindling. today, adding to uncertainty, as bilateral contracts will be redesigned for new frequency The system operator also noted National Grid. continue as agreed. markets alongside other illustrated that its requirement The same timetable applies planned balancing changes. for upward reserve (assets that to a new product for reactive National Grid will discuss its One of those is manually can increase consumption or power, used to control voltage. plans and requirements at instructed reserve services, used stop exporting to the grid) may National Grid said the existing Energyst Media’s DSR conference to correct forecast errors and double in the next five years. set-up does not properly in London on 7 September. See unexpected losses in generation As such National Grid said it value reactive power and that dsrevent.uk for more informaton Ofgem to slash ‘billions’ from Triad payments Ofgem has confirmed that Ofgem originally planned to capacity market. That may lead it will implement steep cuts take the Triad payment down to to some large new gas plants to small generators’ Triad less than £2/kW. The regulator being built but may also provide payments. The regulator said following consultation a windfall for the UK’s existing suggested its move would with industry, it will take it to fleet of large thermal generators. save consumers billions of between £3/kW and £7/kW Small generators with capacity pounds in the longer term. over three years from 2018-21. market contracts secured in The changes come as part Cutting the Triad payment will 2014 and 2015, before the of a larger overhaul of network likely increase the outturn of the charging review was announced, charging.
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