Purchasing Energy by Paul Bennett, Executive Chairman of BSSEC

Energy in Buildings and Industry and the Energy Institute are delighted to have teamed up to bring you this Continuing Professional Development initiative MARK THROWER MANAGING EDITOR

SERIES 15 | MODULE 08 | ENERGY PURCHASING Purchasing energy By Paul Bennett, executive chairman of BSSEC

nergy is the lifeblood of Figure 1: Energy market forces commerce, business and industry. Organisations are now spending more on energy E than they have ever done before, and, energy spend will only go in one direction in the future – up. Therefore, the purchasing of energy is a vital activity in the energy management and procurement profession. In this CPD article we will take a look at the energy markets and how legislation is impacting future pricing of energy. We will look at the two predominant energy sources of electricity and gas and how these markets operate and consider the information needed to procure energy in these markets. Finally, we will look at practical steps to take when procuring energy. There are many factors that a fect energy markets and their price and year carbon budgets have also been Traded Commodity – Energy is stability including: set until 2032, which act as milestones a commodity that is traded on the Global Supply – Global energy to achieve the 2050 reduction targets stock exchange, meaning that prices producers such as Saudi Arabia and set by the CCA. The Renewable Energy constantly luctuate and there are the USA have major in luence over Directive requires all members of the both good and bad times to purchase oil output and prices. Coupled with European Union (EU) to commit to energy. Trading enables energy to be European gas connections with producing and promoting renewable bought in advance, from the short term Russia it can be quickly understood energy, with a target of 20 per cent to much longer term. For example, that the availability and price of renewable energy generation by energy can be purchased for the day, energy can vary. Factors such as this 2020.5 The Energy Act ensures that week, month, quarter, season, year mean that the stability of energy can energy demands are met despite the and up to ive years ahead. As this be volatile depending upon global discontinuation of older power plants is possible, prices can be locked for events. While gas in the UK is not and decarbonisation by investing more identi ied volumes (a price lock is a imported directly from Russia, their money into new infrastructure and irm commitment to Take-Or-Pay). two largest customers, Germany and schemes. Other measures in place in Hedging is a di ferent option, behaving the Netherlands, are connected to the the UK include the Feed-in Tari fs (FiT) like an insurance policy where a fee is UK via two major gas pipelines. 57 per scheme which promotes the use of paid upfront to guarantee a capped cent of the UK’s gas is supplied from technologies that generate renewable commodity price. If the market ends imports1 and this is predicted to rise and low-carbon electricity typically on up being higher than the cap, the to 93 per cent by 20402, with Norway a small-scale, by requiring electricity counterpart refunds the di ference. supplying approximately 61 per cent of suppliers to make payments for the Capacity – The UK infrastructure is the gas that the UK imports.3 generation and export of electricity ageing, has had little investment and Political Intervention – Govern- to eligible installations. Support for is nearing capacity. 20 per cent of the ments intervene in the energy market large-scale generation of renewable UK’s electricity generation capacity to attempt reforms – however this electricity is o fered through the has been lost since 2010 due to the has directly increased energy costs. A Renewables Obligation (RO) in which closure of power stations, and it is sample of these reforms include the electricity suppliers source increased estimated that a further 35 per cent will Climate Change Act, Renewable Energy electricity from renewable sources. be lost by the end of 2030, however Directive, Energy Act, Feed-in Tari f, The Climate Change Levy (CCL) is peak demand is expected to increase, Renewables Obligation and Climate a tax applied to the energy bill of adding further pressure to meet our Change Levy. The Climate Change Act non-domestic consumers in the UK needs.6 Energy distributors charge (CCA) was enforced in 2008 with the to encourage a reduction in energy customers on the amount of energy aim of cutting carbon emissions by 37 consumption and emissions unless they use, coupled with the maximum per cent by 2020 and 80 per cent by they source or supply low-carbon or demand, and customers are charged 2050 against a 1990 baseline.4 Five- renewable fuels. on this peak demand whether they

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FEBRUARY 2018 | ENERGY IN BUILDINGS & INDUSTRY | 21 SERIES 15 | MODULE 08 | ENERGY PURCHASING

reach it or not. Demand-side response Figure 2: Electricity market structure is a new method to increase the lexibility of energy consumption which involves rewarding consumers for changing their consumption patterns through new tari fs and schemes, and technology such as smart meters. Another method that focuses on managing demand, improving network e iciency and reducing the energy charges for large industrial and commercial users is the triad charging system. Consumption is measured every half an hour, and peak demand The customer enters into a contract with an energy supplier to provide metered electricity. during the triads is calculated. The Large consumers of electricity are provided with electricity meters to code of practice 5 (up to 1MW), 3 (1MW to 10MW) and 2 triads are three periods during winter (10MW to 100MW) which record consumption over each 30-minute period and are therefore often referred to as half hour meters where energy demand is at its highest. Customer or half hourly read meters. Energy suppliers receive charges for Smaller consumers of electricity below the Code 5 threshold are sub-divided into pro ile classes ranging from domestic users (pro ile classes 1 & 2) to signi icant energy users (pro ile classes 7 & 8). The vast majority of business customers in pro ile classes 38 the transmission and distribution of have manually read meters. energy that is purchased, which are then passed on to the customer and The supplier is licensed to supply electricity to the customer and charge them for their consumption. The supplier also coordinates are known as TUoS (transmission use the associated contracts with the meter operator, meter asset provider, data collector and data aggregator. of network) and DUoS (distribution use The supplier uses an electricity meter to bill the customer. The unit charge of electricity is the kWh and is billed per unit consumed. Supplier The electricity supplier collects the consumption data through the Balancing and Settlement Code system. This provides accurate of network) charges. TUoS is where bills for the customer as well as accurate predictions of electricity demand for all parties within the electricity industry. Customers costs are recovered from running and with a capacity of less than 100kW are entitled to opt into the settlement system if they are prepared to pay additional charges and maintaining the national grid, and upgrade their meter. DUoS is where the costs are recovered The generator owns the plant which generates the electricity and is licenced to sell electricity directly to the supplier. Some Generator for distributing electricity across the generators are owned by suppliers. national network. The distributor owns the local distribution network through which the electricity reaches the customer. This includes cables, Big Players – UK energy companies Distributor are very large and operate with power, transformers, meters and other infrastructure assets. with the largest known as the ‘Big Six’ The meter operator has overall responsibility of operating and maintaining metering equipment. The meter operator is contracted Meter operator which is comprised of SSE, EDF Energy, to the supplier and normally has a separate contract with the meter asset manager to manage the meter. British Gas, npower, EON UK and The meter asset manager is contracted to install, commission, maintain, remove and dispose of the meter and to ensure that it Scottish Power. Suppliers must manage Meter asset manager complies with regulatory requirements. commodity costs, transport costs and government taxes that result from The data collector is responsible for the collection and processing of consumption data from actual meter readings, or the Data collector policy to fund renewable energy. determination of an estimate. This consumption information is then passed to the data aggregator. Energy Markets Regulator - The data aggregator is responsible for the aggregation of data regarding the electricity supplied to customers. The supplier uses Data aggregator Regulated by Ofgem in the UK and this aggregated information for balancing and settlement purposes and to ensure that customers are billed correctly. Ofreg in Northern Ireland. The O ice of Gas and Electricity Markets (Ofgem) regulates the monopoly companies smart meters will provide the UK with Gas Market Information needed for energy which run the gas and electricity a net economic bene it of £6.2bn.7 As The gas market is structured as procurement networks. It makes decisions on price of September 2017, small and large customer, supplier, shipper, transporter, Once the site information has been controls and enforcement, acting energy suppliers are responsible for meter operator and meter reader. collected as previously outlined, the in the interests of consumers and the operation of 7.67m smart meters in Energy brokers can be used to information can be organised for helping the industries to achieve domestic properties, and 939,700 smart procure energy on behalf of customers, procurement into a tender pack which environmental improvements. Ofgem meters in smaller non-domestic sites. and provide services such as data should include:• site and energy details; is a non-ministerial department that In recent years the commodity collection, tendering, invoice audits, • length of contract period to be is governed by the Gas and Electricity price of energy has reduced against remote access, standardised reports, considered (including options for Markets Authority (GEMA) which make projections. However, owing market intelligence, budgeting support locking and hedging); regulatory decisions, determines to renewables obligations and and optimisation of commodity cost. • payment terms – e.g. net 30 days, strategy and sets priorities for policy infrastructure management non- When using energy brokers, it is net 60 days etc; and consists of members with a wide commodity costs of energy are important to ensure that they are an • trading strategy – frequency of range of experience from sectors such predicted to rise. According to the independent broker and follow an events and volumes to be locked or as industry, economics, science and the Committee on Climate Change, energy internal or external code of practice exposed for hedging; environment. bills for consumers could increase by 10 ensuring good governance and • agreement for a capital risk position Smart Meters - The Smart Meter to 15 per cent by 2020 and 30 to 45 per assurance that they are acting in the – the absolute maximum position that rollout is a Government led programme cent by 2030.8 interests of their clients in an honest volumes must be locked if triggered; with the goal of upgrading the UK’s and transparent manner. • documented approvers who are energy systems by requiring energy Electricity Market It is recommended that a written authorised to act (names and contact suppliers to install smart meters into all The electricity market is structured contractual arrangement is entered details); homes and small businesses by 2020 as customer, supplier, generator, into between the broker and • reporting requirements – e.g. to save energy and reduce costs for distributor, meter operator, meter customer that de ines objectives, key trading activities and market conditions customers. It is estimated that between asset manager, data collector and data performance indicators and reporting versus budget; 2020 and 2030, the installation of aggregator. and information sharing. • market intelligence and tracking

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Figure 3: Gas market structure. gas-come-from • Vaughan, A. (2017) Qatar crisis highlights rising UK energy reliance on imports [Online] Available from: https:// www.theguardian.com/business/2017/ jun/08/qatar-crisis-highlights-rising-uk- energy-reliance-on-imports • Office for National Statistics Digital (2016) UK energy: how much, what type and where from? [Online] Available from: https://visual.ons.gov.uk/ uk-energy-how-much-what-type-and- where-from/

The customer enters into a contract with a supplier for the provision of gas. • The National Archives (2018) Climate Customer The largest consumers are provided with daily metering. Smaller consumers without daily metering are termed non-daily metered. Change Act 2008 [Online] Available from: https://www.legislation.gov.uk/ The supplier is licensed to supply gas to the customer and to charge them for their consumption. The supplier also coordinates ukpga/2008/27/part/1/crossheading/ the associated contracts with the meter operator. the-target-for-2050 Gas is invoiced in kilowatt-hours (kWh) consumed, and supplied on a ‘ irm’ or an ‘interrupted’ basis. A irm basis ensures that the Supplier customer will have constant gas availability during the period stated in the agreement. Gas supplied on an interrupted basis to • European Commission (undated) industrial and commercial organisations costs less, but the organisations agree to an interruption at short notice as speci ied in Renewable energy directive [Online] their contract. This would occur when there is a shortage of gas in the market. Available from: https://ec.europa.eu/ The cost of gas consists of a price for the gas itself and a price for transportation, both of which vary between summer and winter. energy/en/topics/renewable-energy/ The customer will pay a total price to its supplier. renewable-energy-directive The shipper buys gas directly from the producers and sells this to the supplier. To keep the level of gas in the UK network at a • EDF Energy (undated) Energy in the Shipper constant level, the shippers balance the amount of gas in the system with that which is being consumed. UK [Online] Available from: https:// www.edfenergy.com/future-energy/ The transporter (or network operator) owns the gas pipeline system. The supplier needs consumption information for billing and uk-energy Transporter the transporter needs the same information to ensure balance in the network. As a result, most meters on the customer’s side of the network are owned and maintained by the major gas network owner, the National Grid. • Department for Communities and Local Government, Department of Energy The meter operator is responsible for keeping the meter in order and contracts a meter asset manager to install, commission, Meter Operator and Climate Change, Department maintain, remove and dispose of the meter and to ensure that it complies with regulatory requirements. for Work and Pensions and Ofgem

The meter reader gathers gas consumption data which is fed back to the Supplier for the purpose of billing and also for the (2015) 2010 to 2015 government Meter Reader shipper to ensure the gas on the network is balanced. policy: household energy [Online] Available from: https://www.gov.uk/ government/publications/2010-to- Details Gas Electricity 2015-government-policy-household- Expiry date and the notice period for switching, giving notice to Expiry date and the notice period for switching, giving notice to energy/2010-to-2015-government- Contract expiry date avoid rolling over to the next period. avoid rolling over to the next period. policy-household-energy#appendix-7- smart-meters Site name and All site addresses are required along with the information All site addresses are required along with the information postcode below. below. • Committee on Climate Change (2014) Energy prices and bills report – Results Peak demand capacity in KW. Low voltage or high voltage connection. Connection type and key messages for commerce Daily or non-daily metered. Maximum demand reached in the past 12 months (KVA). and industry [Online] Available from: MPAN (Meter Point Administration Number) which is the https://www.theccc.org.uk/wp-content/ Meter details M number – unique identi ier for the gas supply point. unique identi ier for the electricity supply point. uploads/2014/12/EPBReport-launch_ Commercial-Industry.pdf Monthly usage over the past 12 months. Annual kWh consumption in the past 12 months. Annual consumption Maximum use on any day. Monthly, weekly and daily half hourly pro iles are best. Shows night and day and wintertime peak use during the 47pm period. Further Reading • CIPS A Guide to Purchasing Energy and Impacts of any energy e iciency programmes. Plans to reduce usage during Triad DUoS peak periods. Carbon Footprint Impacts Changes in the future Availability promise. • CIPS Negotiating Energy Supply Impacts of any energy e iciency programmes. Contracts

Availability Firm or interruptible. Capacity (KVA). • EMA Electricity Procurement • Energy Institute Energy Management Other Gas pressure. Details of power factor. Essentials – Module 2: Metering & Buying requirements; The procurement process should conditions e fected by macro events • contractual requirements (including be well planned with identi ied time such as political or economic supply Useful Links data collection and data visibility); frames for:• preparation of data e.g. situations that e fect price stability or • Ofgem - www.ofgem.gov.uk • assessment methodology four weeks; volatility. Unexpected factors such as • Ofreg - www.uregni.gov.uk (including consideration to renewable • tender period e.g. four weeks; cold weather may a fect the timing of • Chartered Institute of Purchasing and energy, cost, data provision, payment • review e.g. two weeks; the tender process. Supply - www.cips.org terms, options for price ixing and • interviews e.g. one week; • Major Energy Users’ Council - www. hedging, risk, clear invoicing, reporting • decision and appoint e.g. one week; References meuc.co.uk and account management preferences); • Total of 12 weeks • https://www.britishgas.co.uk/ • Energy Institute – www.energyinst.org • tender return date; and Planning when to go to market the-source/our-world-of-energy/ • Committee on Climate Change - www. • contract award date. may be a decision based upon market energys-grand-journey/where-does-uk- theccc.org.uk

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FEBRUARY 2018 | ENERGY IN BUILDINGS & INDUSTRY | 23 SERIES 15 | MODULE 08 | FEBRUARY 2018 ENTRY FORM ENERGY PURCHASING How to obtain a CPD accreditation Please mark your answers on the sheet below by placing a cross in the box next to the correct answer. Only mark one box for each question. You may ind it helpful to mark the from the Energy Institute answers in pencil irst before illing in the inal answers in ink. Once you have completed the answer sheet in ink, return it to the address below. Photocopies are acceptable. Energy in Buildings and Industry and the Energy Institute are delighted to have teamed up to bring you this Continuing Professional Development initiative. 6 What is the current interval between This is the eighth module in the ifteenth series and focuses on Energy QUESTIONS carbon budgets in the UK? Purchsing. It is accompanied by a set of multiple-choice questions. 1 By how much does the Climate Change ■ 6 months To qualify for a CPD certi icate readers must submit at least eight of the Act aim to reduce emissions by 2050? ■ 1 year ten sets of questions from this series of modules to EiBI for the Energy ■ 20 per cent ■ 5 years Institute to mark. Anyone achieving at least eight out of ten correct answers on ■ 40 per cent ■ 10 years eight separate articles quali ies for an Energy Institute CPD certi icate. This can be ■ 60 per cent obtained, on successful completion of the course and noti ication by the Energy ■ 80 per cent 7 Which of the following is NOT a component Institute, free of charge for both Energy Institute members and non-members. of the electrical market structure? The articles, written by a quali ied member of the Energy Institute, will appeal ■ Supplier 2 Which of the following is part of the ‘Big to those new to energy management and those with more experience of the Six’? ■ Meter operator subject. ■ Bulb Energy ■ Shipper Modules from the past 14 series can be obtained free of charge. Send ■ Ecotricity ■ Data collector ■ EDF Energy your request to [email protected]. Alternatively, they can be downloaded ■ Flow Energy 8 Renewables obligations and infrastructure from the EiBI website: www.energyzine.co.uk management are predicted to make non- 3 The Renewable Energy Directive aims to commodity energy costs do what? achieve how much renewable energy ■ Become eliminated SERIES 14 SERIES 15 generation by 2020? ■ Remain the same MAY 2016 APR 2017 MAY 2017 APR 2018 ■ 10 per cent ■ Decrease ■ 20 per cent ■ Increase 1 Biomass 1 Lighting Technology ■ 40 per cent 2 Behaviour Change 2 Boilers & Burners ■ 70 per cent 9 Which is NOT a piece of legislation that 3 Energy Management Standards 3 Compressed Air aims at improving energy e iciency or the use of renewables? 4 Air Conditioning 4 Water Management 4 What is the maximum number of ■ 5 Internet of Things 5 Combined Heat and Power Megawatts that a code of practice 5 Feed-In tari fs electricity meter allows? ■ 2018 IET wiring regulations 6 Training for Energy Management 6 Drives & Motors ■ 1 ■ Renewables obligation 7 Data Centre Management 7 Under loor Heating ■ 10 ■ Climate change act 8 Metering & Monitoring 8 Energy Purchasing ■ 100 9 Battery Storage 9 Photovoltaics* ■ 1000 10 Which of the following correctly de ines ‘hedging’? 10 Demand Side Response 10 Heat Pumps* ■ 5 Electricity generators sell electricity A commodity that is traded on the directly to whom? stock exchange Annual consumption * ONLY available to download from the website after publication date ■ Customer ■ Prices can be locked for identi ied ■ Supplier volumes ■ Distributor ■ The collection and processing of

“ Energy in Buildings and Industry and the Energy Institute “ Energy in Buildings and Industry and the Energy Institute “ Energy in Buildings and Industry and the Energy Institute consumption data from actual meter are delighted to have teamed up to bring you this are delighted to have teamed up to bring you this are delighted to have teamed up to bring you this ■ Meter operator Continuing Professional Development initiative ” Continuing Professional Development initiative ” Continuing Professional Development initiative ” Mark Thrower Managing Editor Mark Thrower Managing Editor Mark Thrower Managing Editor readings SERIES 15 | MODULE 07 | underfloor Heating SERIES 15 | MODULE 06 | drives & Motors SERIES 15 | MODULE 05 | combined heat & power Underfloor heating Energy-efficient Combined heat & power ■ A fee is paid upfront to guarantee a comes of age drives and motors as an energy source By Patrick Waterfield, principal environmental engineer at JCP Consulting Ltd By John Pooley, John Pooley Consultancy Ltd By Wayne Ward, managing director at Building Services Sustainability & Environmental Consultancy Ltd he Romans (and before underfloor heating – a brief timeline he amount of energy used table 1. Potential savings estimated by CeMeP them the Ancient Greeks) by electric motors is around ombined heat and power variety of fuels (e.g. mains gas, gaseous is slightly higher (20-40 per cent). realised the benefit of 45 per cent of all global Area of potential savings Potential saving (CHP), or cogeneration, is waste fuels, commercial waste fuels These internal combustion engines capped commodity price underfloor heating via the Neolithic period Evidence of stone-covered trenches in dwellings in Asia and Aleutian Islands electricity consumption. This a highly efficient process etc.) in an engine or turbine that’s are best suited for small sites which Increased use of energy-efficient motors 10 per cent hypocaust system - the term gives rise to around 6,000Mt that capitalises on the heat connected to an alternator. During a high demand for hot water in T 5,000 BC Evidence of “baked floors” found in Korea and Manchu; T Electronic speed control 30 per cent is derived from Greek words literally of CO2 each year. Motor-driven systems C generated as a by-product this process, a significant amount of comparison to electricity. The ratio of meaning “under-burning”. A fire was lit are also estimated to account for 65 Mechanical system optimisation 60 per cent of the generation of electricity. Coal and heat is created as a by-product, which heat to power is approximately 1.5:1 but at underfloor level and the heat drawn 3,000 BC Korean fire hearth used as both kitchen range and heating stove; per cent of industrial electricity use. gas-fired power stations can often be is usually wasted in conventional decreases with size. through a sub-floor void under action As a result, they need to be a focus for Total 100 per cent seen expelling wasted heat energy as power generation. However, in a CHP Unit sizes vary from 50kWe – of flues in the walls (which also allowed 1,000 BC Ondol-type system used in the Aleutian Islands and present-day North Korea; energy-saving activity. clouds of steam from cooling towers. application, the heat from the exhaust, 1,500kWe. the relevant wall areas to act as heat Electric motors are normally CHP systems exploit the heat energy oil cooling circuits and water jacket is They are used in: smaller emitters). Greeks and Romans scale up the use of conditioned floors (and walls) with purchased as part of an item of in other elements of the system is more that would otherwise be wasted in (decentralised) hospital buildings, 500 BC potential for retrofit improvements. recovered and distributed to a nearby hypocausts; equipment, for example, an air Before looking at the elements of a significant. Potential savings estimated traditional electricity generation, to heating system. This reduces the hotels, leisure buildings, individual handling unit. This means in most cases motor-driven system it is important to by CEMEP (European Committee of produce both electricity and heat in a requirement to burn additional gas university buildings, small residential Asia continues to use conditioned surfaces but replaced in Europe by the open 500 AD the end user is not the direct buyer consider the purpose of the system. Manufacturers of Electrical Machines single process. in a boiler or central heating system. buildings on a district heating scheme. fire and early forms of the modern fireplace; of the motor. The end user often only For example, a water circulation pump, and Power Electronics) are shown in The UK government states that Energy from CHP is nearly always Gas turbines are the most common becomes a motor purchaser when how is it controlled? Is it running the table above. installing CHP saves organisations produced locally to its end user, which prime mover on larger scale CHP units. Countries in the Mediterranean Basin use various forms of hypocaust-type 700 heating in public baths and homes (and also use heat from cooking to heat the replacing the motor. When specifying 24x7 when only needing 8x5? The around 20 per cent of their energy limits the amount of energy loss due to In a gas turbine engine, a fuel is floors); systems that include motors, the end magnitude of savings here (in the Focus on whole system costs and reduces CO2 emissions by up transmission. burned (normally natural gas) in a user should consider specifying what region of 75 per cent) is many times This suggests that 90 per cent of the to 30 per cent. The main drawback with Excess electricity generated can combustion chamber, causing heat Ondol continues to evolve in Asia, with the fire furnace moved outside and the 1000 performance level(s) they require from the potential savings in the motor and savings potential occurs outside of the CHP is that to gain maximum efficiency be sold to the grid, and any shortfall and pressure to force air down the room entirely floored with Ondol in Korea; the drive system. drive system. motor – hence a focus is required on it is recommended to be operated for in electricity can be purchased from unit to drive a series of turbine blades. Ideally, all the energy efficiency the whole system. around 4,500 hours per year. the grid. As battery technology is The pressurised air drives a generator, 1400 Hypocaust-type systems used to heat Turkish Baths of the Ottoman Empire; aspects of a motor-driven system are Motor is heart of the system This approach is reinforced by CHP has been proven worldwide increasingly reducing in cost, further generates electricity via an alternator. Source: http://mcauleyhistory.edublogs. addressed at the system design stage. The heart of the system is the motor, to European Standard EN 50598 Part 2 - to be an effective means of reducing benefit can be derived by storing the The expelled heat is utilised by a org/2012/10/24/the-roman-villa-project/ 1500 Wide-scale adoption of floor heating in China and Korea; However, electric motors are not only which is added motor control – ranging Energy efficiency indicators for power operating costs and environmental generated electricity for use during heat exchanger to provide hot water. hypocaust/ efficient machines they are highly from a simple starter to a variable drive systems and motor starters. (This damage in domestic, commercial and peak times, subsequently further Typical entry temperatures are in the 1600 Heated flues in floors and walls used in greenhouses in France; reliable, typically with a life span of over speed drive (VSD). Then, unless a standard covers performance in the industrial scenarios. It is widely used in reducing reliance on the grid. In region of 900-1,200oC, with exhaust Slightly earlier (ca 1,000BC) were 15 years. This means that opportunities direct drive system, a transmission power range 0.12kW to 1,000kW.) countries like the Netherlands, Finland addition, this helps to reduce reliance temperatures in the region of 500oC the traditional Korean “Ondol” (warm 1700 Hypocaust type system used to heat public baths in modern day Iraq; to upgrade existing motors may be system (typically belts or gearbox) is While motors come in a wide variety and Denmark. In Finland, 82 per cent of on the grid at times of fluctuating depending on the scale of the turbine. stone) dwellings, which also featured limited. Although the scope for motor connected to the ‘load machine’. While of types and sizes, the three-phase, electrical power generation in 2012 was demand. The heat to power ratio can be as a form of underfloor heating. The Beginnings of the European evolution of the modern water heater/boiler and replacements may be limited, there there have been developments in ac, cage induction motor is the most produced via cogeneration. Germany is There are multiple types of CHP high as 5:1 in certain applications if Please complete your details below in block capitals 1800 Ondol used smoke from the cooking water-based piping systems (eg in John Soane house and museum, London); will be ‘legacy’ systems that offer the motor efficiency the scope for savings common motor encountered in energy on-course to provide 25 per cent of the engines, each suited to different output ‘supplementary firing’ is undertaken fire, i.e. heat that would have been country’s power through cogeneration requirements. The size of the unit will (which enables control over varying generated anyway, making better use 1864 Ondol-type system used at Civil War hospital sites in America; by 2020. depend on the calculated or estimated amounts of heat. of the fuel. Indeed, there is evidence of It is believed that the first CHP base heat load (CHP is most economic These setups are reported to be very Liverpool Cathedral heated with system based on the hypocaust principles (also similar features in excavated Neolithic 1904 application was undertaken in the when the unit is sized slightly over the reliable. However, they are very loud installed in various UK churches in Victorian times); settlements. United States in 1882 with the Thomas baseload heat load). units, have a lower electrical efficiency Edison-designed Pearl Street Station, An internal combustion engine in than reciprocating engines and are not Frank Lloyd Wright designs the floor-based radiant-heated Herbert Jacobs 1937 Heating elements or cables house; the world’s first commercial power a CHP unit works in a similar way to efficient at periods of low demand. An underfloor heating (UFH) system plant. This plant burned coal to the engine in a motor car. The unit Smaller units (up to 500kWe) have essentially comprises heating elements The first standards for floor heating are developed in Europe. Water-based generate enough electricity to power burns a fuel (normally natural gas or a low electrical efficiency (around 1980 - either PVC piping carrying warm Ondol system is applied to almost all residential buildings in Korea; approximately 400 lamps, and the compression-ignition diesel) which 20-30 per cent) so have to be used water (“wet” system), or electric heating waste bi-product of heat was used to generates motive power. The power is with a recuperator to preheat the air cables - located beneath the floor Floor heating becomes a traditional heating system in residential buildings warm neighbouring buildings. The turned into electricity via an alternator. to ensure it qualifies as ‘Good Quality surface. In the case of wet systems, 1985 in Middle Europe and Nordic countries and increasing applications in non- Pearl Street Station CHP was thought to CHP’ as defined by the UK CHP Quality residential buildings; The wasted heat will be used to heat the pipes are usually laid in a sand/ be about 50 per cent efficient. a body of water, or sometimes to Assurance Programme. cement “dry” screed or self-levelling Today, CHP plants are able to work create steam. Exhaust gases can be It is possible to get micro turbines as 2010 71-storey radiant conditioned Pearl River Tower in Guangzhou, China; Name ...... (Mr. Mrs, Ms) ...... liquid screed on top of insulation on at an efficiency around 85 per cent, as hot at 600oC, which produces integrated packages with absorption a concrete floor slab, though they which is thought to be 25-35 per cent low temperature hot water (LTHW) cooling to enable tri-generation. can also be laid in a dry screed on a conducts it to the floor covering where arrays and mats which can be laid in a more efficient that the separate energy temperatures of up to 95oC. They find use in: hospital buildings suspended timber floor. The screed it is radiated into the room. Electric thin screed or tiling adhesive layer or systems it replaces. Electrical efficiency of these units is with a district heating system, absorbs heat from the piping and types are found in the form of cable direct under a wood floor, for example. Electricity is generated by burning a low (20 per cent), but thermal efficiency universities (with district heating), large

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Tel No...... The Energy Institute (EI) is the professional body for the energy industry, developing and sharing knowledge, skills Completed answers should be mailed to: The Education Department, Energy in Buildings & Industry, P.O. Box 825, and good practice towards a safe, secure and sustainable GUILDFORD, GU4 8WQ. Or scan and e-mail to [email protected] energy system. The EI supports energy managers by o fering membership and professional registrations including Chartered Energy Manager, as well as workshops, events, training and networking opportunities across the UK and Produced in Association with overseas. It also produces a number of freely available knowledge resources such as its online Energy Matrix and energy management guide. 24 | ENERGY IN BUILDINGS & INDUSTRY | FEBRUARY 2018