theenergyst.com April/May 2018

Triad u-turn: Tide turning: Convergence: “Build offshore wind without 06 Unabated 26 Atlantis believes 42 How Gateshead subsidy? You are bonkers ” generators can do Triad it can make tidal power combines heat, power under MCPD after all cheaper than nuclear and storage to cut bills p13

Published 2018

INSIDEThe THIS Heat ISSUE Report 34 Commercial buildings A brighter, station and other lighting upgrades, plus optimised BMS savings, heating 36 e iciency boost and more Heat Tackling heat 42 will be key to decarbonisation. So Heat what are the options Gateshead Council is providing and how to get cheaper heat and power to there? The Energyst commercial and residential asked experts customers, and funding front for their views line services. How did it do it? 16Produced by Supported by The Energyst Event 52 Convergence of generation and Viewpoint consumption is happening now. Amid talk of data scientists What does that mean for energy unlocking the new economy, managers and their businesses Lisa Gingell argues data – and what’s coming next? translators will be crucial.

You’re bonkers if 13 you think we will Insight Forthright views from build o shore wind energy company bosses at subsidy-free the Aurora Spring Forum

theenergyst.com April/May 2018

Triad u-turn: Tide turning: Convergence: “Build offshore wind without 06 Unabated 26 Atlantis believes 42 How Gateshead subsidy? You are bonkers ” generators can do Triad it can make tidal power combines heat, power p13 26 47 under MCPD after all cheaper than nuclear and storage to cut bills Emerging Storage 14 Technologies I&C irms banking on FFR Atlantis boss Tim Cornelius revenues are ‘gambling’ says Cover believes tidal power could be RedT boss Scott McGregor. Story deployed at scale in the UK and He thinks businesses should GridBeyond France for less cost than new instead seek to build longer- claims a breakthrough in nuclear Hinkley Point term storage business cases hybrid DSR and storage

News & Comment 4 Commercial buildings 28 Products 56 Insight 12 Heat 36 Q&A 58 The Energyst Event 16 Storage 46 Emerging technologies 22 Viewpoints 50

To subscribe please visit: theenergyst.com/subscribe theenergyst.com April/May 2018 3 COMMENT The mañana energy strategy

Hearing many of the inspirational speakers at The energy world is shifting from the more familiar – The Energyst Event in April disclosing how their energy delineated – procurement and energy effi ciency silos to a management strategies are becoming integrated made broader, converged, landscape. Energy effi ciency is moving me think that not only is this happening now, it is towards commoditisation that enables better fi nance yielding effective results for those that have embraced the backed by initiatives such as QualitEE (Quality Assurance converging energy landscape. Stories about incorporating Frameworks for Energy Effi ciency Services) to increase storage or onsite generation, avoiding peak tariffs, investment in energy effi ciency services and improve building energy effi ciency cases beyond simple payback trust. Pay-as-you-save schemes and, more generally, periods, innovative energy service and fi nance models, energy-as-service are aiming to unlock the vast potential and decarbonising heat, are just a few of the projects of improved effi ciency. Add to these developing areas such changing the way organisations manage energy. as streamlined DSR schemes, the potential of batteries and, more broadly, energy – and for that matter heat The energy world is shifting storage and perhaps peer-to-peer trading via blockchain, big data and the internet of things with analysis aided by from the more familiar AI – and you have a signifi cantly different picture than delineated procurement would have been the case even only a few years ago. and energy e iciency silos to a broader, converged, Some think the evolution of these new-fangled initiatives landscape is something than can be considered tomorrow, if at all – mañana. These accounts from business and the public sector about Banister House Estate in London’s making energy effi ciency stick, incorporating procurement Hackney has performed the and fl exibility into a single – coherent – approach, might UK’s fi rst peer-to-peer energy make you think that end-users have it cracked and are trade, using blockchain, from data-savvy kings of this emerging, brave, new, smart one resident to another based energy world. Yet this does not by any means seem to on onsite generation and be the rule, rather they are pioneers and exceptions to storage. It is happening today. the rule. The average fi rm’s attitude to energy is often Teams across organisations need to ambivalent. How long can this remain the case? dismantle internal barriers to effectively procure, Research by Centrica Business Solutions has found that reduce and shift businesses that have a sophisticated attitude to energy, energy consumption. invest in advanced energy solutions and measure and control energy effi ciency, are twice as likely to outperform This is not an idea competitors on customer-centricity and brand leadership. for the tomorrow Cost reductions from better energy management, yes, but because the future further reasons accumulate making the case compelling. is already here.

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 and 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 2018 theenergyst.com

news & comment

Environment Agency makes Triad u-turn The Environment Agency Triad avoidance, but would has shelved plans that come under the scope of the would effectively prevent rules as ‘specified generators’. unabated generators As a result, they would no performing Triad avoidance. longer be classified as ‘back-up’ Under the Medium generators, and as specified Combustion Plant Directive generators would need to (MCPD), generators that take comply with the relevant on new balancing services permitting and deadlines. agreements with National Winter peak Grid, or new Capacity Market avoidance: More questions contracts, must comply with watch this space Industry is now seeking clarity strict emissions limits by 1 on whether participating in January 2019. They are classified fitted to generators, for many Triad avoidance next winter as ‘Tranche B’ generators. businesses the cost could commits back-up generators Those that do not take on new outweigh any savings. to becoming Tranche A agreements are classified as It appears the agency has generators irreversibly. ‘Tranche A’ generators and have listened to industry concerns. “So, if you are a back-up until 2025 or 2030 to comply. A briefing note from the So, if you are a generator, can you become The EA had originally stated Association for Decentralised back-up generator, a ‘specified generator’ and Triad avoidance would be Energy states: “It has now can you become a Triad avoid, and then go classed as a balancing service, been agreed that, if a Tranche A back to being an emergency pushing Triad avoiding generator participates in Triads ‘specified generator’ generator before the generators into ‘Tranche B’, from 2019, this will not change and Triad avoid, permitting deadline in 2025?” and therefore required to its status to Tranche B, because and then go back to asked Enernoc programme meet new NOx emissions Triad is not a balancing service.” manager Shane Summers. limits by 1 January 2019. Asked by The Energyst to being an emergency “If the answer is ‘no’, then Industry was dismayed that confirm the information, the generator before the businesses must consider Triad, a billing methodology Environment Agency said: permitting deadline carefully Triad behaviour applied retrospectively by “Yes this is correct – we will in 2025? this year, because then they National Grid to determine be consulting stakeholders are committed to Tranche transmission charges, was on draft guidance in May.” A and may have to install being classified by the EA Triad avoidance from 2019 selective catalytic reduction as a balancing service. Back-up: no rule change onwards they “may not continue (SCR),” he added. The proposal would have Under the UK interpretation of to be an exempt generator if “Ideally we could have effectively ruled out unabated the MCPD, back-up generators [they] carry out Triad operation some clarity as soon as generators from taking part in are exempt from controls, in 2019 onwards, but will become possible, because businesses Triad avoidance next winter, provided they run for back-up a Tranche A or B generator”. need to make decisions including back-up generators. only. However, the EA has That means back-up now around Triad and While abatement can be indicated that if they perform generators could still provide whether to invest in SCR.”

Grid confirms Triad dates Water giant now selling energy Water Plus, the joint venture competition in April 2017, National Grid confirmed this winter’s Triad periods at the between Severn Trent some 88% of Energyst end of March. The system operator said the three highest and United Utilities, has readers suggested that winter peaks, at least 10 days apart, upon which it bases started selling energy. they would buy energy and transmission system charges for large firms, were on: The company told The water from a single • 11 December for the half hour ending 17:30 Energyst it is primarily supplier if it saved • 5 Feb, for the half hour ending 18:00 • 26 Feb for the half hour ending 18:30 targeting small firms, them money. All three fell on a Monday and all three were below 50GW. touting savings of “up to Yet a year on, only a It was also the first time that two Triads have fallen in £400” if companies buy fraction of small firms February. all of their utilities through it. have switched water Eon claimed it hit all three periods in 13 alerts to However, its website also supplier (see p9). customers, three of which were ‘high’ alerts, six of which states it has the expertise Water Plus said there were ‘medium’. Utilitywise claimed it hit all three periods in to handle supply to more was “increased demand” 16 alerts, nine of which were ‘red’ alerts. complex multisite operations. for a multi-utility offering Polled ahead of water retail from customers.

6 April/May 2018 theenergyst.com EVs boom no sweat, says National Grid

National Grid has said the National Grid says Stewart Reid, who chairs power system could cope the power system can the ENA’s low carbon with an overnight boom in cope even with rapid technologies working group, electric vehicles and that the uptake of EVs told the committee that EVs, extra generation capacity if charged flexibly, would required to handle millions also help the system cope of vehicles is no big deal. in the other extreme, when Nine million electric there is too much inflexible vehicles on UK roads might generation on the system. require 8GW of extra power “Flexible charging brings generation capacity if people an opportunity to de-constrain charge them when they like. wind. So flexibility is the key,” But smart charging could cut generation is needed” if energy vehicles tend to be on an eight he said. “It provides additional that to 4GW, potentially less, companies can “marry up the to nine year cycle. So while capacity and also enables us according to National Grid’s challenge of the generation a change overnight could be to get the maximum out of EV lead, Graeme Cooper. and the wires to get the more dramatic [it is unlikely existing network assets.” Cooper was questioned generation in the right place”. to be] a cliff edge,” he said. Asked whether the UK alongside Ofgem and the Even if uptake of electric While the UK’s generation government’s target to phase Energy Networks Association vehicles is more aggressive mix is changing relatively out new petrol and diesel cars (ENA) by the Business, than National Grid’s modelling quickly, the system is “very by 2040 should be brought Energy and Industrial suggests, Cooper said the robust” and is responding to forward to 2030, Cooper said he Strategy Committee. system would be able to cope. that change, said Cooper. “So believed National Grid “would Cooper said the firm’s “People who lease a car tend I think there is enough time support a more ambitious modelling suggested “not a to be on a three to four year even if we see sharper uptake, target” and could “absolutely” tremendous amount of new cycle; people who buy private to respond in the right way.” cope in that scenario. Vattenfall touts 1MW PPAs to fund Firms buy 1.6TWh via South Kyle wind farm without subsidy corporate PPAs Vattenfall is touting power would also welcome any purchase agreements change in policy, given “there About 1.6 terawatt hours (PPAs) as small as 1MW is a limit as to how many (TWh) of power were or 3GWh per annum from projects can go down the consumed via power purchase its South Kyle Wind Farm PPA route” and that domestic agreements in the UK last in south-west Scotland. consumers are also unable to year, according to estimates That means the firm is engage in the PPA market. by Smartest Energy. effectively targeting mid- Hunt said market feedback The Marubeni-owned firm, sized companies as well suggests companies typically which buys and sells power as corporates. It hopes corporate PPAs are seen as a seek to lock in around 20% of produced by independent to convince them to buy route to market by developers. their consumption via long- generators, said PPAs were renewable power and Vattenfall was granted term PPAs, with procurement a win-win, as they enable lock in prices for between consent for the South Kyle departments attempting buyers to lock in prices and 10 and 20 years. Wind Farm last June. The to familiarise themselves demonstrate sustainability, The utility is working with company’s UK originator, with new approaches. while enabling generators and Mitie Energy on tenders James Hunt, told The Energyst He said the tender should developers to fund projects. to buy the power from the the company aimed to make also shed light on what Smartest Energy’s sixth 165MW onshore wind farm, a final investment decision on businesses are prepared annual Energy Entrepreneurs which Vattenfall expects will the project by the end of this to pay for long-term price Report also details how much output 500GWh per annum. year or first quarter 2019. certainty, given open market was spent on independent Bids to buy its output can “Right now, there are no visibility is usually limited UK renewables projects in be submitted until June. subsidies available, hence to two to three years. 2017 (more than £227m), In the absence of subsidies looking at [corporate PPAs] Hunt said he expected and opportunities around for onshore wind, which is in order to bring South Kyle the output would fetch battery storage co-location currently ineligible to bid for to financial close,” said Hunt. “about current market models. Download the free contracts for difference (CfDs), He added the company rates” in real terms. report at: smartestenergy.com

theenergyst.com April/May 2018 7 news & comment

Ofgem chief relishes ‘contentious, difficult’ charging review, with proposals by autumn

Ofgem chief executive Speaking on a panel our thinking for us.” Dermot Nolan has warned alongside UK Power Reserve He pointed to the recent that there will be losers CEO Tim Emrich, a vocal challenge to its decision on from its overhaul of network critic of Ofgem’s decision to transmission charging by charging arrangements. slash Triad benefit, Nolan SSE and EDF, which was The regulator intends said the regulator had to dismissed by the Competition to come up with a new set make difficult decisions in and Markets Authority, of rules regarding how the interest of consumers. by way of example. people access and pay for “Questions of fairness The panel had discussed the grid, due in part to will come up [during the fostering innovation within the number of people now charging review]. They are the energy industry but avoiding charges, leaving unavoidable for a regulator Nolan: says regulator has to Nolan also warned that some others to pay a higher tab. in what almost by definition make difficult decisions who “perceive themselves Nolan told Aurora’s Spring will be a contentious process, as innovators will fail”. Forum in Oxford that the in which every different underpowered and led by “Some will flourish, some regulator will publish some person is saying, ‘no me, I’m large market incumbents will wither; we should charging proposals by late the guy, I’m the innovator’. that he claimed “control” expect that,” said Nolan. summer or early autumn. “So we will have to make the industry code panels. “The point is, do you have “I expect those proposals judgements that are extremely “They don’t give Dermot a rule book that is sufficiently to be regarded with interest difficult,” said Nolan, and his team a lot of options,” flexible to allow those that are by a large number of adding that the regulator Emrich suggested. going to flourish to do so?” [market] participants, some was nevertheless “looking Nolan said he did “not of whom will like them, forward” to the process. feel the regulator is under- Aurora’s Spring Forum brought some will not,” said Nolan. resourced on issues relating together energy company He added that the Not underpowered to charges at all” and was seniors as well as regulators review, “almost by nature, Nolan also rejected claims “dismayed at the view and policymakers. See p12 will be contentious”. by Emrich that Ofgem was larger companies are doing for more of their views

Get cracking on decarbonising gas, Energy minister: ‘Bring on mine heat’

National Grid urges government Energy minister Claire Perry has thrown her support National Grid has called for to meeting energy needs. behind projects to turn Using steam methane government to get to grips old mines into source of with decarbonising gas to reforming to create hydrogen renewable heat. enable decarbonisation of will require relatively unproven It comes as several local heat, transport and industry. and financially challenging authorities look at tapping a The gas and electricity carbon capture and storage potentially abundant source system operator recommends (CCS) or carbon capture, of energy, with projects appointing a lead official usage and storage (CCUS). underway in Cornwall and with responsibility for gas In the absence of policy Kilmarnock. decarbonisation with a remit clarity around hydrogen and Perry said she is “really to set strategy and policy. CCS, National Grid said there interested” in geothermal In a wide-ranging report on were still least regrets actions mine water projects. the future of gas, National Grid Gas will likely remain central that industry, government “If there are groups out there that are interested said whole system thinking to meeting needs, says Grid and the regulator could take. in promoting this and will be crucial to deliver However, it said much suggesting what can be least-cost decarbonisation. peak requirements for heat closer collaboration between done in a cost-effective way, The firm said a silver bullet alone (which would require power and gas companies, bring it on,” she said. in terms of technologies is about six times the winter with a regulatory and policy “We have already dug the unlikely and reiterated the electricity peak of 50- framework that recognises holes [the mines], lets see challenges associated with 60GW), National Grid said the increasing interrelation whether we can get some systems-wide electrification. gas, potentially hydrogen, between all parts of the energy more benefit.” Pointing to huge winter would likely remain central system, is urgently required.

8 April/May 2018 theenergyst.com Sponsored column How intelligent is your market intelligence?

It’s a crucial component of every 6MW tidal turbine starts energy buyer’s arsenal but is your market intelligence really fit for purpose? Information must work commercial operations for every type of buyer, but it’s only as good as its application. Atlantis says its 6MW tidal different turbine designs, Market intelligence is integral to turbine array in Pentland three AAH turbines and one energy buying. No matter how your Firth in northern Scotland of Atlantis’ own design. business buys its power or gas, it is an has completed all tests and It qualifies for five renewables essential factor in making decisions entered its 25-year operations obligation certificates (Rocs) with accuracy and confidence. Not phase. The milestone caps per MWh, reflecting the heavy only a touchstone for the quality of a more than a decade of lifting required from both consultant or suppliers’ expertise, but work. The company will public and private investors in the underlying insight any company now turn its attention to bringing tidal technology to needs to build a successful energy scaling its operations and this stage. Atlantis says it has strategy. to the market intelligence that goes commercialising tidal stream a 1GW pipeline with 392MW Within those broad pillars, market with energy procurement. On our technology. consented. intelligence needs to perform a Open platform, all users have access The first phase of the 6MW number of functions. It is essential to twice-daily market notifications MayGen project uses two See p26 for further details to keep up with the many drivers – vital health checks on current affecting prices, with analysis that conditions that sit right next to your anticipates change. But relevant insight must build a cumulative latest portfolio data. 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Half of UK’s power from low carbon sources as renewables top 40GW

Low carbon sources accounted overall generation output as for 50.4% of power generated S olar power stood at 12.8GW light levels reduced, whereas last year in the UK, according at the end of 2017, but onshore wind delivered 10% to latest government data, delivered less than 2% of the as wind speeds picked up. overtaking fossil fuels. mix in the fourth quarter However, the UK’s total Demand and emissions energy consumption remains Across all sectors final more than 80% reliant on energy consumption fossil fuels, and transport fell 1.1% annually. consumption continues to rise. Domestic sector consumption fell by 4% and Generation the services sector fell by 1.8%. Total UK generation output However, industrial in 2017 was 335.9 terawatt consumption increased hours. Of the generation 0.8% while transport mix, gas dipped to 39.7%, consumption rose by 0.7%. nuclear fell slightly to 20.9%, UK net carbon emissions while renewable generation fell 3.2% year-on-year. increased to 29.4%. The energy supply sector Coal generation dropped by continues to decarbonise approximately a quarter year- fired up again as part of the the year end, with onshore faster than any other, with on-year to 6.7% of the mix. capacity mechanism, so that wind overtaking solar to emissions falling 8% year- However, while use of coal- the use of coal in the fourth hold the largest share of on-year, now down 57% fired power stations declined quarter of the year was little that mix (12.9GW, compared compared with 1990 levels. through most of the year, different to the previous year. to 12.8GW of solar). Emissions from transport large stations such as Fiddler’s Renewable generation However, in quarter four, remained flat and have only Ferry and Eggborough capacity stood at 40.5GW by solar delivered less than 2% of declined 1% since 1990.

Google hits 100% Northumbrian Water signs with renewables goal Ørsted to go 100% renewable with 3GW in PPAs Google has hit its target Northumbrian Water will savings of £1.4m per annum to use 100% renewable power all 1,858 of its sites at current EU ETS prices. power. The firm said it using renewable electricity Northumbrian Water now has contracts in for the next four years after commercial director Graham place to purchase 3GW of signing a deal with Ørsted. Southall said: “Energy is an output from renewable sources and plans to fund Ørsted owns or has a stake in essential part of our business construction of more power nine UK offshore wind farms and our contract with Ørsted plants. (Barrow, Burbo Bank, Burbo has enabled us to significantly Urs Hölzle, senior vice- Bank Extension, Gunfleet reduce our carbon footprint, as president for Technical Sands, Lincs, London Array, well as driving down costs.” infrastructure, said Google’s Walney, West of Duddon Sands Northumbrian Water will power Ørsted Sales UK managing accounting for 2017 shows and Westermost Rough). all of its sites with renewables director Jeff Whittingham it bought more power from It also has another four added: “Businesses should renewable sources over the projects under construction result in an 8GW portfolio have access to renewable year than it had consumed – (Hornsea One, Hornsea The firm said two years ago electricity supply without all from wind or solar plants Two, Race Bank and Walney it would supply renewable incurring additional cost.” built specifically for Google. Extension), which would take power at brown power prices. Naturally, Whittingham was The company said it will its offshore interests to 4.9GW, The deal will enable “delighted” Northumbrian sign more power purchase agreements (PPAs) to plus two in development Northumbrian Water to Water had signed the deal, develop further renewables (Hornsea Three and Isle of save 125,000 tonnes of CO one of the biggest in the 2 projects. Man). If built, these would each year, which equates to water company’s history.

10 April/May 2018 theenergyst.com Sponsored column Clearing the air on renewable Ex-Npower boss to head up blockchain firm Electron transformation Paul Massara is to take further investment from the CEO role at energy Systemiq, an investment Dylan Crompton, experts are also predicting an blockchain firm Electron. firm that backs potentially head of corporate increase in energy demand. The former Npower chief disruptive companies (it also sales at British Population growth and an executive joined Electron as recently invested in Upside Gas Business, increase in the number of a non-executive director last Energy). explains how the use of electric vehicles are cited year. Electron believes its natural gas can help the UK as the primary reasons. In Electron founder and blockchain platform could to manage its renewable light of all this, how can the current CEO Paul Ellis will provide a more efficient way transformation. UK manage its renewable become company chairman. of managing the energy transformation? Electron is expanding its system, and is working to Using traditional energy to The key lies in using a team after securing both develop an energy flexibility advance renewable goals traditional source of energy public and private funding, trading platform with energy may sound contradictory. to eke out renewables. and in April announced industry majors. But that is what is required That source is natural gas. to successfully manage Fortunately, the more the UK’s transformation. renewables the UK installs, the Especially when the country quicker the country can phase is decommissioning energy out gas. The fact that the UK’s New I&C sales Bristol Water capacity from coal and nuclear gas production is around faster than renewables 40% of what it was in 2000 head at Total takes FD from can be introduced. Natural supports this trend. gas, however, can help At British Gas, we already Bristol Energy the transition to a green, procure more electricity from low carbon economy by renewables than we do from Bristol Water has hired functioning as a temporary gas. In fact, our 40% rate of Laura Flowerdew as its next stepping stone. ‘Temporary’ renewably sourced electricity being the operative word. is substantially higher than the chief financial officer. The world’s first coal- national average of 24%. This Flowerdew, currently finance fired plant began producing means we can already provide director for Bristol Energy, will electricity in 1882 in London. our customers with 100% replace Mick Axtell, who will A little more than 70 years certificate-backed renewable Total Gas & Power has leave the firm after financial later, the UK established electricity. hired former Npower sales, statements for 2017/18 are its first nuclear station At Centrica we have recently marketing and technical approved by the board. in Cumbria. Both were added both NEAS, helping services director, Mark Rose Flowerdew will start on considered ground-breaking customers maximise value (pictured), to head up its sales 1 October. She held senior innovations at the time. from energy assets, and operation to large businesses, finance positions at Tribal Jump 60 years ahead, REstore demand response including industrial and Group, the De Beers Group and we are witnessing the specialists, to the group dissipation of these sources. commercial firms. and Anglo American prior to business capability. In April 2017, the country went These services lead to better Prior to joining Npower in joining Bristol Energy. She an entire day without using energy management and 2014, Rose spent 10 years with is also a former director at coal to generate power. By the allow us to efficiently adapt EDF Energy, five of which Deloitte’s energy infrastructure end of that same year, wind supply in real-time. Ultimately, were with British Energy. and utilities business. and solar generators were they make decarbonising producing more electricity more efficient while we also than nuclear plants did. maintain security of supply. RedT hires in New Gemserv But this gear-shift is With all of our progressive not easy. That’s because offerings, we believe that bid for growth chief executive traditional sources are not British Gas is in pole position just fizzling out. They are to become a leading provider Energy storage firm RedT has Alex Goody will take over disappearing at breakneck in the UK’s sustainable energy speed. In 2005, for instance, future. hired former Green Investment from David Thorne at energy the government assigned the Bank managing director and data services firm Nuclear Decommissioning Find out what British Gas for finance Fraser Welham Gemserv this summer. Authority to take 17 nuclear can do for your business at: as chief financial officer. Goody is Gemserv’s director plants out of rotation. britishgas.co.uk/business/gas- Aiming to scale operations, of busines development and If that wasn’t enough, and-electricity/large-business the flow-machine company consultancy, and will work with has also hired Jean Louis Thorne on handover before Cols as technology director taking the reins in mid July. and promoted Dave Stewart Thorne announced in January to chief operating officer. that he would step down.

theenergyst.comcom Insight Eon: Renewable power is done, now for heat and transport Speaking at Aurora’s Spring Forum, Eon’s chief executive believes the firm’s future growth lies in decarbonising heat and transport, where there is ‘still a problem to be solved’

on CEO Michael Lewis believes the UK has largely cracked Edecarbonisation of power generation and must concentrate on heat and transport, which is where he said the energy company will concentrate its efforts. Lewis: “Eon wants to play a key Speaking at Aurora’s Spring role [in transport and heating]” Forum, Lewis, who took the reins from Tony Cocker are at a similar juncture to ahead unless government will focus more fully. a year ago, applauded the renewables “10 or 11 years had moved to two Rocs”. “We believe our capabilities policy stability of successive ago” and pointed out that Giving offshore wind are better deployed where there previous governments in while the UK has succeeded developers additional subsidy is still a problem to be solved,” delivering renewables. in delivering some 40GW at that point, he suggested, was he said, suggesting the starting “[Renewable generation] has of renewables generation, now bearing fruit in enabling point should be “making the been a huge success but, in many “success was far from a forgone the economies of scale that are existing system more efficient.” ways, that is already done,” said conclusion back then”. leading to cost reductions. Under the proposed Lewis. While there are “some Lewis said in 2008 Eon had “We were about to make an Eon-RWE deal, it has been issues around intermittency” two offshore projects under £800m investment decision announced that Eon will focus to solve, “we have [achieved] construction, “both hugely and needed to know that the primarily on retail and networks, renewable, low and zero carbon over budget and late”. The firm government stood behind us, with RWE taking on generation. generation at a lower price than had another two in operation, which they did, and created Speaking at the same conventional generation. Now both beset by technical a world class industry.” conference, SSE boss Alistair we need to turn to transport difficulties. Meanwhile, the That foresight should now Phillips-Davies said he “saw and heating – and that is where London Array project “came be applied to decarbonising the SSE-Npower merger going Eon wants to play a key role.” that close to not going ahead, heat and transport, said forward and being unaffected He said heat and transport and would not have gone Lewis, which is where Eon by the RWE-Eon deal”. te Vattenfall backs hydrogen to decarbonise heavy

wedish power company and change for industry, Hall a trial to replace coking Vattenfall believes said Vattenfall was engaged with coal in ore-based steel Shydrogen produced Sweden’s major manufacturers making with hydrogen and from renewable power could around decarbonising processes. is building a test plant. decarbonise heavy industries He suggested while climate The firm has also struck such as steel and cement change has perhaps been a deal with pulp and paper production – and the firm sidelined by global political firm Preem to use hydrogen wants to own the supply chain issues, it will “come back big to create biofuels from from generation to storage. time”, with companies aware of forestry bi-products. CEO and president Magnus the need to clean up. “I think Hall said Vattenfall also Hall (pictured) told the Aurora in the future, if you are not has designs on decarbonising Spring Forum that “fossil- sustainable as a company, you the “huge” German free steel on a full scale will be punished,” said Hall. chemicals industry. will, I think, be deployable Decarbonising heavy between 2030 and 2035”. Hydrogen sonata industry using renewables While a “huge investment” Vattenfall is involved in to create hydrogen via

12 April/May 2018 theenergyst.com ‘You’re bonkers if you think we will build offshore wind subsidy-free’

cottish Power chief to underpin investment executive Keith risk,” he said, pointing to SAnderson has questioned the ongoing construction the apparent obsession hiatus of unsubsidised with achieving subsidy-free large power stations. renewables, warning it will “A gas plant is probably not happen any time soon Keith Anderson the easiest and quickest in the UK for technologies does not believe subsidy- thing to build… but nobody such as offshore wind. free offshore wind will is building those right now.” Anderson took part in a happen any time soon Asked whether the Capacity panel debate around ‘post- Mechanism was viewed subsidy’ renewables at going build a £2.5bn offshore which stabilises revenues for as a subsidy, Anderson Aurora’s Spring Conference. wind farm in the UK at renewables and low carbon replied that it was “meant to Asked which markets are market risk, you’re bonkers.” generators, as more successful underpin investment risk”, most attractive to parent While power purchase than its predecessor, the but for large thermal plant company Iberdrola in terms agreements (PPAs) with Renewables Obligation. such as combined cycle of ‘subsidy-free’ development, large corporates are seen as “It has been fantastic at gas turbines, or CCGTs, Anderson replied that he a way of mitigating risk for bringing real competition “it is just not doing it”. “hates the expression”. developers, Anderson said into auctions and “So if you want that type “I can’t understand why the UK market for such deals driving down prices.” of investment [CCGTs], the renewables industry has is nowhere near mature. The most recent CfD auction you need to underpin become obsessed with talking “If the only thing out saw some offshore wind that investment risk.” about becoming ‘subsidy-free’. there is a corporate PPA, projects take a strike price of Anderson added to calls Right now, nothing in the the market will slow down £57.5/MWh, approximately from other renewables UK energy industry is being dramatically, because frankly, half the price of early offshore companies speaking at the built without some form of that market doesn’t really wind contracts. Anderson conference to bring onshore support, so why in god’s name exist in UK [at the scale suggested prices would fall wind into the CfD mechanism. is the renewables industry required],” he said. “That further due to supply chain “If it is the cheapest form running around desperate might change in 5-10 years, investments, but reiterated his of generation, then underpin to [be seen] as subsidy- but it doesn’t exist right now.” call for continued support. it with a market mechanism,” free?” Anderson asked. Anderson lauded the “I caution against taking he said. “Why shouldn’t UK “Everything has some form contracts for difference about subsidy-free world, or consumers get the benefit of support. If you think we are (CfD) support mechanism, a world without a mechanism of that cheap energy?” te Vattenfall backs hydrogen to decarbonise heavy industry and eyes supply chain ownership

electrolysis would require difference scheme (CfD), which Vattenfall thinks not just vast amounts guarantees returns for output. hydrogen produced of renewable power, but He also said industry has from renewables adjacent infrastructure. a role to play, not only in could decarbonise Hall said Vattenfall intends terms of appetite to change heavy industry to build the whole lot. processes, but to support “We see Vattenfall doing renewables deployment the electricity production, through power purchase the hydrogen splitting agreements (PPAs). and storing the hydrogen “We know how to handle – which is complex.” merchant risk but to drive While the costs of offshore develop of renewables, wind are falling fast, Hall we really need this big called for the continuation of cooperation [between utilities, market stabilising subsidies industry and government] to such as the contract for make the shift happen.” te

theenergyst.com April/May 2018 13 Beyond the grid: a hybrid battery and demand network

As technology f you have so much as the market a while back”. to balance that with batteries. dictates the pace hovered around the edges Phelan comments: “Our Some sites on the network at which we reach of the energy industry in platform was the first in the have seen an increase of more Ithe past you will know world to enable dynamic DSR to than 65% in flexibility from energy milestones that the convergence of energy deliver 24 hours a day, on both onsite assets when connected and a shared energy with technology has seen high side and low side. This to the hybrid network, which breakthrough after breakthrough. provides maximum possible translates into a 65% increase in economy, GridBeyond With the influx of storage benefit to both client sites and available revenue and savings. CEO and co-founder opportunities, renewables the Grid in the UK – combining Ardagh Group, a sustainability and embedded generation, onsite asset capabilities with pioneer in the manufacturing Michael Phelan decarbonised heat innovations behind-the-meter batteries. industry, was the first to install announces the and EVs, it was only a matter From our extensive research, a behind-the-meter battery of time before a substantive we can’t find another solution on the network at the end company’s first hybrid breakthrough was made in the like ours anywhere in the world, of 2017 and kick-start the battery and demand demand-side response arena. and it was certainly the first evolution into the hybrid era. network, paving the Michael Phelan, CEO and to be tested and accepted by Bishwa Giri, energy manager co-founder of GridBeyond, National Grid here in the UK.” for glass Europe at Ardagh way for widespread is certain his team have done Deploying behind-the- Group, explains: “The grid- DSR participation and just that with their hybrid meter storage at industrial and optimising platform delivered battery and demand network. commercial sites creates a level by GridBeyond enables Ardagh uncovering flexibility GridBeyond’s R&D team of flexibility greater than the sum Group to participate in National in onsite assets developed and tested the hybrid of the parts. GridBeyond already Grid’s Dynamic Frequency model in their smart grid lab had the expertise to identify Response programme. In over the course of years “having the flexibility that resides in practice, the battery reduces the anticipated the direction of existing systems and is now able plant’s reliance on the grid, and

14 April/May 2018 theenergyst.com sponsored Cover story

when there is no requirement dissimilar to typical aggregation, initial demand side response for the excess energy that has the clever part is the tech behind projects. Their ability to drive About been stored by the Tesla battery, it: having the ability to rapidly energy technology forward, met it can be delivered back to the rotate, control and combine with Ardagh’s objective to use GridBeyond National Grid, thereby reducing batteries, generation and assets technology to pave the way in GridBeyond uses world-class the CO2 impact of energy usage.” across sites dotted all around the manufacturing sustainability, Phelan explains: “We UK to meet the flexibility needs of meant the partnership made technology to balance the electricity grid, enabling the found that a site doesn’t need the grid and align to each point of perfect sense. They understood integration of more renewables, as much battery storage to the required response curve – a our assets and had full respect and delivering enhanced benefits to implement dynamic frequency solution that can only be achieved for the parameters. Our large energy consumers. response, making a better with high end technology and a operational integrity has been business case for batteries.” wide range of behind-the-meter at the core of every element, so • GridBeyond’s award-winning Phelan adds how this assets and batteries, with a we are delighted to achieve such platform enables access to affects those on the network variety of flexibility, for maximum positive results with no impact the most rewarding demand without a battery on site: due benefit to all participants. on our equipment or processes, response services, as part of the to the controlled rotation and and to now have the resilience world’s first hybrid battery and combination of assets within Working together for of a battery on site too.” demand network. the portfolio, driven by the the bigger picture • Unique analytics, benchmarking platform’s AI and machine “To be part of a pivotal Battery investment and reporting into energy learning, the network enables sustainability achievement for I&C firms activity and DSR participation those without a battery to also such as this makes Ardagh When asked by Energyst Media are accessible via GridBeyond’s advanced client portal. participate in dynamic DSR very proud,’ comments Giri. as part of its Battery Storage • Absolute peace of mind: programmes requiring the most “Sustainability and energy Report if it is too soon for I&C GridBeyond’s asset-first approach, agile of responses, even though management are extremely companies to invest, Phelan experience across all key industry their site may not directly important to Ardagh. As part responded: “I can’t see why. sectors and technical expertise have the inherent flexibility. of GridBeyond’s hybrid battery When working with experienced means they are trusted by and demand network, we are operators, there is a very strong hundreds of sites across the UK & So what is a hybrid battery able to reduce our reliance business case, proof that it Ireland. and demand network? on the Grid during peak works and a very strong cash • GridBeyond simplifies the A hybrid battery and demand times, and fundamentally flow proposition. So all of a complex energy market by network delivers the grid’s help the UK to meet its sudden sites are not looking bringing together balancing long-term vision for a smarter renewable generation goals.” at those long periods of risk.” services, capacity, smart tariffs, and more flexible energy Annelene Fisser, group CSR Phelan has also said that energy trading, peak avoidance infrastructure, while merging and sustainability manager some pure-play storage and energy optimisation into one with the reality and constraints Ardagh Group, adds: “We are operators might find cause unified platform. of the I&C power users. committed to environmental for regret should FFR prices The solution contemplates responsibility and sustainable erode, and that lessons should all of the interdependent needs manufacturing processes be learned from historical facilitates the integration of of the energy consumers as and had been exploring market fluctuations. renewables more so than battery well as addressing a significant battery storage solutions “Businesses borrowed money storage and fast frequency and growing problem for grid to help us effectively meet to invest in generators, and then response programmes, which operators, which require an these commitments. When STOR prices collapsed. Batteries are made most accessible via increased speed of response to GridBeyond approached us on their own seem to be at a GridBeyond’s hybrid battery enable the increased penetration with its hybrid battery and DSR similar stage,” he warns. For and demand network. Any asset of renewable generation. offering, we felt confident that I&C businesses, he says a hybrid or battery that participates via A hybrid battery and demand this would provide the efficient approach means a much lower GridBeyond’s network makes network is a portfolio of and cost effective solution we capital outlay, delivery of greater a difference in supporting the commercial batteries, embedded were looking for, which it has system benefit, and therefore UK’s renewable energy growth generation and demand assets now successfully delivered.” greater returns in terms of from behind-the-meter. working in harmony to provide Giri makes clear why Ardagh generated revenues and savings flexibility to the grid, while originally chose to partner with through peak avoidance. Part of For more information: enabling inflexible sites access GridBeyond over two years the business’ ethos is to develop tel: 01923 431 638 to the fastest responding (and ago: “GridBeyond’s technical a shared energy economy email: [email protected] most financially rewarding) expertise and drive to innovate through technological advances, web: gridbeyond.com balancing services. are the reasons we chose to and this new phase makes While this does not sound too start working with them on strides towards this aspiration.

Our platform enables us to Beyond the grid, deliver dynamic DSR 24 hours behind the meter The electricity system needs to a day, on both the high side and balance the intermittent nature of low side renewable generation. Nothing theenergyst.com April/May 2018 15 The energyst event Communicating convergence

Rob Williams, BT’s head of procurement for property, FM, power & cooling and utilities, outlined the implications of energy convergence for UK plc at The Energyst Event. He said it is incumbent on energy managers to lead business through the transition. Brendan Coyne reports

onvergence of BT has a connection from an generation and 8.2MW solar farm direct to its consumption of Ipswich R&D hub C energy is happening now and structural shifts within the energy system will start to have a more direct bearing on profit and loss. That requires businesses to break down internal silos to Rob Williams remain competitive in a rapidly changing landscape, according BT operates 80,000 meter energy managers in technical better manage electricity costs to Rob Williams, BT’s head of points. Using their data to inform disciplines via the Energy as well as reduce emissions. procurement for property, FM, carbon targets, Williams said Institute’s advanced energy Taking a joined-up approach power & cooling and utilities. the company determined that manager course. But tutors across property, FM, power 67% of its end-to-end emissions also underline the importance and cooling and utilities, is Talk business, not energy are actually within its supply of effective communication. delivering further bottom line Williams believes energy chain, not its own operations. “If you can’t communicate benefits, according to Williams. managers will be pivotal in Communicating such data, with your CFO, I always Combining procurement effecting change but must and its business implications tell attendees, then you are across those areas “feels communicate business outcomes throughout the company, is probably going to fail as an natural” in hindsight, he said. rather than talk about energy, critical to reducing its footprint energy manager,” said Williams “But in big business, we act which few executives fully and driving commercial “My background is wind in silos. Getting people to act understand, or care much about. outcomes, said Williams. But farm development, selling across those silos is really Williams’ lengthy job title there’s the rub. “That is one of electricity to utilities via PPAs challenging. Convergence suggests BT has grasped the real challenges of energy (power purchase agreements, internally can be as difficult the nettle. He told delegates management, and all technical where buyers agree a set as the convergence externally, at The Energyst Event that disciplines; to communicate price for power directly with particularly when some BT’s departments have been to finance and the CEO what a developer or generator),” parts [of the business] are collaborating, or converging, on earth are you actually Williams explained. outsourced,” he said. for a number of years to cut talking about,” said Williams. “Then I moved downstream The first step was to combine emissions and consumption, “Talking in kilowatts and to join one of the UK’s largest utilities procurement with setting its first carbon target megawatts doesn’t turn anybody energy consumers, first in power and cooling. “That got in 1992. He cited BT’s Home on; doesn’t create any investment operations department, in the the teams talking together” Hub by way of example. plan. To really engage with energy management team, and resulted in a shift from “We introduced ‘spring out’ finance, and drive collaboration then into procurement.” procurement based on capital feet on the Home Hub in 2014. and convergence, we have to The benefit of that expenditure (capex, focusing The product R&D team initially talk simply as an industry,” he experience, he said, has on lowest upfront cost), to didn’t want to do that because it said. “A problem clearly put helped drive convergence and operational expenditure (opex, made the hub more expensive. is a problem half solved.” efficiencies within BT, which focusing more on whole But it meant we could package now buys around 400GWh life costs), said Williams. it in an envelope that fitted No more silos per annum directly from wind “That sounds simple, but through letterboxes, which means Williams said he has been able farms, and has an 8.2MW for many businesses, can delivering first time, first journey. to join the dots at BT due to solar farm connected directly be a massive change.” That saves cost, carbon and time broad experience within the to its Ipswich R&D hub. Williams gave an example and improves customer service.” energy sector, and now trains That means the company can of the capex to opex shift

16 April/May 2018 theenergyst.com at its data centres, where elements. So if you are buying an data centres. Somebody realised BT is investing in adiabatic IoT system, you need to converge that was in a red band for DUoS cooling, which uses water and the thinking and the themes.” charging [the most expensive air to cool plant rather than period for distribution network refrigerant gases, so is more Communicate and collaborate charges],” said Williams. environmentally friendly and Convergence of Communication is critical in “Moving that to overnight delivers lower running costs. generation and delivering such ambitious saved £50,000 per year. That consumption is change, Williams reiterated. is a really simple example but Next steps: IoT really happening, “Energy managers need to lots of people still don’t know Williams believes BT has help the business and finance what a DUoS red band is.” one of the largest buildings and it is critically communities understand their The second example related management systems in important that future energy costs and the to a factory in the North East, the country, with 6,000 businesses drivers of those costs,” he said. which similarly sought to buildings connected to understand “Whether that is transmission avoid peak network costs by the system. The next step and distribution costs, increasing shutting down at 4pm rather is to add further sensors Renewables Obligation or Feed- than consume power into and comms infrastructure about 20% saving on cleaning in Tariff costs, or future Contracts the evening peak period. throughout the estate to – that is FM,” he explained. for Difference costs, as well as “They worked with the HR deliver greater efficiency “We have brought property what is driving consumption. team to come up with a bonus through smarter controls. and FM under my management “Convergence of generation scheme for all the employees to But Williams suggested a because of all the linkages and consumption is really change the shift patterns. All the unified approach to energy and between those areas. Lighting happening, and it is critically workers were paid a bonus – and property is as critical as the is traditionally an FM product, important that businesses that paid back in 18 months,” underpinning infrastructure. not a hard technical M&E prod. understand [the implications].” said Williams. “That is a great “Looking at the business But IoT starts to naturally merge Williams cited two examples example of how HR, cost and case for the internet of things these things: [unlocking] 20% of energy managers contributing energy can all come together to (IoT), you are not just looking at savings on cleaning; 10% savings to forward business planning, make business more efficient.” energy, or power and cooling,” on energy; 20% savings on M&E one internal and one external: “That is convergence, he said. “You also have quotes in maintenance,” said Williams. “We were running a [data] and it is where energy there where people are talking “One system covers all of those back-up at 5pm in one of our managers need to be.” te

theenergyst.com The energyst event Energy managers ‘to become fleet managers as EVs rise’ Association for Decentralised Energy director Tim Rotheray outlined structural shifts and incoming challenges facing energy managers at The Energyst Event. Brendan Coyne reports

on the grid: are you helping balance the grid; are you helping to avoid reinforcement? And not just in a generic way, but much more precisely.” Rotheray urged businesses to educate themselves about what is coming down the track in terms of regulatory change. “If you are an energy user, you need to be aware of what Ofgem is doing via the Charging Futures Forum and the Targeted redicted growth of Rotheray. For businesses, quarter of business electricity Charging Review. They are electric vehicles means he added, “that means the bills, while policy costs, loaded going to happen, and they are energy managers Clean Growth Strategy is onto electricity rather than gas, going to happen really fast.” Pmay also become going to start to bite”. are also rising. By 2020, the Rotheray said charging regime fleet managers, according to Meeting the fifth budget wholesale electricity cost will change and the fact government Association for Decentralised will require significant only make up about a third of will require businesses to be Energy director Tim Rotheray. decarbonisation of heat, which the bill, with the rest coming “much more active participants Meanwhile, changes to grid in buildings accounts for 32% of from non-commodity elements. in [decarbonising] heat and charging structures mean firms emissions, as well as transport. Meanwhile, the cost of transport” to meet the fifth that take a ‘passive’ approach How that will be achieved running the transmission Carbon Budget, “means being to consumption will be less with heat is not yet clear, network, largely due to a fully engaged energy user competitive than proactive rivals. though government and the changes in generation mix, is will really start to matter”. Speaking at The Energyst automotive industry appear rising rapidly. In 2010, it cost “If you are an engaged energy Event in Birmingham in April, to agree on decarbonising approximately £950m. By 2021 user, you have an opportunity. Rotheray outlined increases in transport through electrification. it is expected to hit £3.7bn. If you are a passive energy user, network charges and incoming Rotheray said growth in Growth in behind-the- my expectation is your bill will regulatory change, as well as electric vehicles could lead to meter generation to avoid rise significantly,” said Rotheray. the implications of the Clean energy managers also becoming those charges mean higher “You are going to start to become Growth Strategy for industrial fleet managers. “EVs will mean a costs for those that cannot less and less competitive.” te and commercial businesses. whole bunch of additional power avoid them. As such, Ofgem is While meeting the UK’s first demand – and potentially, power undertaking a major review of four Carbon Budgets can largely demand you can return to the how network costs are allocated. be achieved by decarbonisation grid and provide vehicle-to-grid That means “the world in of power generation, the fifth services,” he said. “So, at some which people could install budget (which covers 2028- point, the energy manager is onsite generation and take value 2032) will require businesses going to have a significant role from avoiding use of the grid to take an active approach in being the fleet manager.” is going away”, said Rotheray. to cutting emissions. “In the future, the only way “All of the sections of the Grid charges [businesses] will be rewarded Clean Growth Strategy bar Transmission and distribution will be based upon what they do Tim Rotheray one relate to end users,” said charges make up about a in the short and medium term

18 April/May 2018 theenergyst.com

The Energyst event Seminar snapshots Unlocking energy finance, incoming network charging changes, subsidy-free solar and robot TPIs were just some of the topics discussed at the inaugural Energyst Event in April

Unlocking energy finance can’t make money flow at future will AI do more than compliance director Kevin Steven Fawkes of consultancy scale unless you solve these the admin work? Should Lumley said: “Automation is EnergyPro outlined the other issues: standardisation, people be worried about the key. AI is reliant on data. barriers sitting between energy development and capacity.” ‘robots taking their jobs?’ The knowledge and experience efficiency projects and vast Fawkes said pieces of the “I think it will, eventually,” that you get as a broker and the pools of institutional capital puzzle are coming together said Chris Maclean, CEO of ability to use your imagination “looking for a good home”. “but you need absolutely all of Open Energy Market. “But [the to deliver creative solutions – To scale up investment in those things to come together TPI sector] has not showered AI can’t do that, unless it has energy efficiency requires in one place, in one sector itself in praise in terms of actually learned to how do so industry and investors to in one situation, otherwise technological progression. through machine learning.” “assemble the jigsaw” of energy money doesn’t flow”. Other markets will be way Can automation and efficiency finance. Principal ahead, and we will probably intelligence help ‘clean up’ the pieces, said Fawkes, are: Is tomorrow’s TPI a robot? be one of the last [to feel the unregulated broker market? providing finance; developing Not as far as a panel of TPIs is effects]. I understand they are “Absolutely,” said Maclean. a pipeline; standardisation concerned. “Technology cannot trialing AI on the trading floor “Technology can bring and; building capacity. replace human relationships,” of a city bank, but that is some transparency but also control “Whenever you see stuff said Energi Mine COO Hannah way away for the TPI market. to the energy buyer. In the happening at scale, it is Drake. “But automation saves Drake added: “If people past, it has been opaque, because these four issues someone spending all day are worried about ‘robots handing over responsibility have been addressed. Very on data entry. Yes artificial taking their jobs’ we can to a consultant. Technology often people say money is the intelligence (AI) will play a role upskill them, so I don’t enables you to follow the problem [in scaling energy in this sector but first of all we think it is anything people process all the way through efficiency]. But money isn’t need to automate what we can.” should be worried about. and start to feel confident the problem, because you At some point in the Green Energy Consulting in what you are doing.”

20 April/May 2018 theenergyst.com network to take over when they EV revenues and fail”. As such, he suggested, subsidy free solar they should bear more of the Nottingham City Council cost of individual services, is working on what will be such as frequency response, “Europe’s largest vehicle-to- performed for their benefit grid project,” according to by the system operator Luke Raddon Jackson, energy when they fail, rather than projects manager within the smearing charges based on council’s Energy Projects demand across all users, as Service business unit. is the current practice. The project, at the council’s Latrémolière described the Eastcroft depot, will help status quo as “absurd” and power “hundreds of electric suggested Ofgem “thinks commercial vehicles that we harder” about transmission will roll out over the next charging should it lose the couple of years,” Jackson embedded benefits court case, told The Energyst Event. under way as The Energyst The Energy Projects Service, went to press. Charging which develops and owns specific parties, ie large onsite generation and energy generators, for the value of projects for the council as services they receive from the well as other public and transmission system would be private clients, is “having a more reflective, he argued. big push on solar car ports” “The only way we will get more broadly in a bid to create out of the current absurdity is income for frontline services. to rethink what those services “We own a lot of car parks are, and therefore probably to that generate a lot of revenue,” step on some incumbent toes. said Jackson. “Solar car parks What are the chances that the are going to generate a whole Charging Futures group, set new revenue stream and up by a bunch of incumbents help push us even closer to are only going one way.” very hard for us to mitigate the sitting in an incumbent breaking even as a council.” Steve Edwards, head of flex scale of the impact [of mooted room, thinks very hard about Jackson told the conference and demand-side response changes]. A 25% increase in something like that? Absolute the council has also “developed at metals processing group our input cost is possible. That zero,” Latrémolière suggested. a subsidy free solar model for Liberty House, voiced an energy would force us to consider “So the Charging Futures our commercial buildings and intensive user’s concerns about where we put operations.” thing will be a damp squib. ground mount [installations], the potential speed of network And the absurdity will which we are delivering charging change – and fears Accumulating absurdity accumulate until it is too big, more and more of ”. of a ‘broadbrush’ approach. He Franck Latrémolière, a and it breaks,” he concluded. said the outcome of Ofgem’s network charging expert and A poll of the audience, Network charging changes targeted charging review may partner of Reckon LLP, gave largely public and private Georgina Penfold, CEO of the influence whether the global his opinion of the challenges sector end user organisations, Electricity Storage Network, firm invests in UK operations. Ofgem finds itself trying to suggested very few, if any, covered the ‘known knowns’ “We understand the fix, and where it may end up. feel they have a full handle on of incoming network charging system is changing and that He said the current network charging changes, changes. She outlined the charging structures going transmission charging system or sufficient representation current regime’s 23 itemised forward should be reflective. fails to recognise the services in the change process. te elements and concluded: Our main concern is how performed by the transmission “The only thing we know for quickly this might affect us system operator to large More than 900 visitors certain is that to reduce non and how significant that effect decentralised power stations. attended the inaugural commodity costs, we have to could be,” said Edwards. Latrémolière argued that Energyst Event. Thanks to be flexible. You really need to “Calculating around some large power stations “need all attendees, exhibitors and be engaged, otherwise costs of the numbers, it could be the ability of the transmission sponsors for making it happen.

theenergyst.com April/May 2018 21 EMERGING TECHNOLOGIES Energy irms eyeing ‘tokenisation’ models Energi Mine CEO Omar Rahim claims tokenisation underpinned by blockchain will e fect lasting behavourial change. He also says energy irms are planning to ‘tokenise’ parts of their business, and that ultimately “everything will be tokenised”. Brendan Coyne reports

nergi Mine, the spending £10m a year on Attempts to reward behaviour energy consultancy energy might set a reward developing a on a target to save 10% via change have previously failed Eblockchain-based behaviour change, which is due to issues of veri ication and energy effi ciency rewards what the token incentivises.” trust. Blockchain is the only platform, is in discussions Rahim says perhaps with half a dozen energy half of the savings could technology that can do both companies about ‘tokenising’ then be offered to staff, parts of the energy chain. who can redeem tokens for only technology that can CEO Omar Rahim says goods, services, or cash. do both,” he suggests. most of those discussions “Our aim to reduce global The company has launched revolve around “energy and energy demand. It doesn’t a trial with Network Rail carbon trading”, though matter whether users share and Rahim says Energi Mine he believes that ultimately, that goal, they might just will announce further trials “everything will be tokenised”. care about fi nancial side,” ”with global corporates In simple terms, ‘tokenising’ said Rahim. “But the result in the coming weeks”. means taking real world is the same; they reduce It is looking for more fi rms assets, or the rights to their energy footprint.” and local authorities to trial them, and putting them While incentivising the platform and says all onto a blockchain. The behaviour change is not a trials will be “fully funded”. asset owner gets a token in new idea, Rahim believes a return. They can trade or blockchain platform solves ‘Everything will be tokenised’ redeem that token, making issues of trust and thinks While there is much it a digital currency. it can therefore deliver hype around blockchain, Energi Mine sold $15m sustained impact. regulators around the world (£10.6m) of tokens in its initial “Factory employees have lately voiced concern fundraising round earlier this may be sceptical about initial coin offerings year. Rahim says the lion’s that savings or token sales. But Rahim share of the money will be will be believes that “in the future, spent on platform development passed on. everything will be tokenised”. and striking global But smart “The concept of ownership partnerships. A beta version contracts is dying,” he says. “Blockchain is due for release shortly mean you has the potential to change with a full release of the fi rst don’t have the economic system in a version set for “June or July”. to trust the way that we have never seen line manager. before. With the connected Reducing global demand Everything is world, change, tokenisation, According to Rahim, the linked into meters will happen a lot quicker fi rm’s ultimate aim is to and tokens are deployed than people think – and reduce global energy demand automatically when triggers the energy market is no by incentivising behaviour are hit, so there is no gaming different from that.” change. Its initial model of the system,” he says. While few fi rms are talking is to target I&C fi rms and “Yes, there are other publicly about tokenising local authorities to trial its technologies. But attempts energy assets, Rahim platform to see if they can to reward behaviour change believes they soon will. achieve energy reduction have previously failed due “It is inevitable. It is targets by rewarding staff. to issues of verifi cation and a fantastic way to fund “For example, a factory trust. Blockchain is the projects,” he says. te

22 April/May 2018 theenergyst.com

Heat Emerging technologies: the answer to decarbonising heat?

Many bright minds are trying to harness renewable and lower carbon heat to deliver broader system benefits. Brendan Coyne outlines a handful of projects at varying stages of maturity

hris Sansom is Associate Professor in Concentrating CSolar Power at Cranfield University. His UK research focuses on novel materials for seasonal heat storage, most notably phase change (PCM) and thermo-chemical materials. Interviewed for The Energyst’s 2016 Heat Report, Sansom outlined his belief that magnesium sulphate heptahydrate, or Epsom salts, could be a viable material for seasonal heat storage. The idea is that adding water to involving five houses in London and the South the salts causes a reaction Fuel cells? East. Ceres said the units provided most of the that creates heat at around houses’ power (80% on average) and all of 80°C, which is viable for Fuel cells were supposed to be the next their hot water. It claimed the units save up to 2 big thing in the mid-Noughties, but are space heating and hot water. tonnes of CO2 per household, with “near zero” Two years on, Sansom taking some time to mature. However, West NOx and SOx emissions. The fuel cells were Sussex-based Ceres Power, backed by FTSE says the Epsom salts connected to existing natural gas infrastructure, 250 firm IP Group, believes its technology, research has moved forward but can also take biogas or hydrogen where when operated as a CHP plant, could help available, which would further reduce emissions. but remains some way decarbonise both heat and power. The firm has joint development agreements off commercialisation. The company completed a one-year small with Nissan, Honda and Cummins for its solid However, Cranfield scale residential trial in September 2017, oxide fuel cell technology. University’s energy and facilities management department has tasked Sansom form of salt, magnesium in one form or another, and and may find the market with assessing whether he can nitrate hexahydrate. hopefully become a good more receptive now that deliver heat storage for the Sansom’s students have demonstrator that heat storage the PV sector “is in a lull”. university’s growing campus, designed the storage tank can be achieved economically.” where heat demand is now – roughly a five-meter cube Turning wind into heat more than its CHP system and – and the initial assessment Corrupted by power? Physicist Alex Voigt agrees biomass boiler can deliver. is that the system delivers a Asked why progress on there has been too much focus five-year payback. The next decarbonising heat appears on electricity. He is trying 20MWh: five-year payback step is to take a more detailed minimal, Sansom says it “isn’t to couple heat and power The project is to develop proposal to the board. Sansom necessarily a policy issue, through a wind-powered a 20MWh heat store that thinks it will go ahead, though more that we have just become CHP his firm Lumenion is can store excess heat from potentially at a smaller scale. so fixated by electricity that working to commercialise. the biomass boiler over the “It kills two birds with heat has been left out”. The system uses excess wind weekend, ready for the demand one stone for the university, He believes solar thermal, to create and store C02-free pick-up on Monday morning. not only improving energy heat storage, heat recovery and heat. The company claims the Because the system requires efficiency, but supporting their heat networks sectors should insulated heat store can then a specific temperature own research and students “promote and market” the either provide process heat of 90°C, Sansom will as well,” says Sansom. opportunities for renewable at 300-500°C for industrial use a slightly different “So I think it will go ahead heat more aggressively – and commercial applications,

24 April/May 2018 theenergyst.com value. Bridgend County Borough Council has secured European funding to turn the old Caerau colliery into a source of renewable heat, while Nottingham City Council says it is starting to examine the potential of mine water.

Deep geothermal Deep geothermal projects are also under way in the UK. They involve drilling deeper than traditional geothermal projects to extract higher temperature heat. Caerau Colliery: plans Geothermal Engineering is for renewable heat

Pic credit: Walt Jabsco/Flikr Walt Pic credit: currently involved in projects in Cornwall and Scotland. Lumenion plans to turn debate in March on energy The United Downs project in excess wind into heat efficiency and the Clean Redruth, Cornwall, plans to Growth Strategy, Perry said drill down to 4.5km in order to she is “really interested” extract water at around 190°C. in geothermal mine water That would enable power technologies and offered generation as well as heat encouragement to developers. storage. Drilling is scheduled “If there are groups out to commence in May. there that are interested in The GE project in Scotland, promoting this and suggesting in partnership with Arup, what can be done in a cost- gained planning permission in effective way, bring it on,” said March and is set to commence Perry. “We have already dug drilling to a depth of 2km. The lower temperature heat for Mine water the holes [the mines], lets see hot water extracted will be used district heating, or convert heat Energy minister Claire whether we can get some more to deliver heat to a network back to electricity to smooth Perry recently threw her benefit for those communities.” at the old Johnnie Walker peaks via a steam turbine. weight behind projects to It comes as local authorities bottling plant in Kilmarnock, Speaking at Aurora’s turn old mines into sources in old mining areas start which is being turned into Spring Forum in March, of renewable heat. to look at whether the pits a mixed-use development, Voigt told the conference that Speaking at a Westminster can still provide community called The Halo. te decarbonising process heat is a significant opportunity – 100TWh in Germany alone.

Hot rocks Siemens Gamesa is also looking to deploy wind- powered heat storage, and says it will commission a 30MWh system based on 1000 tonnes of insulated ‘hot rocks’ at an aluminium smelter in Hamburg by spring 2019. However, the firm plans to convert the heat back into electricity, with the government-supported project aiming to demonstrate renewable power can be stored more economically Halo effect: deep than traditional storage and geothermal a go-go at the be harnessed to provide power old Johnnie Walker plant over a 24-hour period. theenergyst.com April/May 2018 25 Think big to make tidal power ‘cheaper than Hinkley C’ Tidal power is approaching commercialisation. Tim Cornelius, CEO of Atlantis Resources, believes gigawatts could be deployed in UK waters before Hinkley C is cooking its first turkey – and if the French government backs its plans – for less money. Brendan Coyne reports

tlantis Resources’ answer need not be binary. is aggressive but not particularly generation, so won’t need 6MW tidal array France is preparing for a optimistic. It is halving last as much power conversion entered its 25-year commercial tender in the waters year’s CfD bid through relatively equipment,” says Cornelius. “So Aoperational phase in off Normandy and Brittany. simple things,” he says. there are a multiple elements April, a major milestone for the Atlantis has submitted proposals that lead to cost reduction.” Pentland Firth MayGen project. to the French government, Cost curve Crucially, he says tidal power To date, it has clocked up more suggesting that 1GW could be “Going to multiple turbines per can “ride the coat-tails” of the than 6GWh and is breaking delivered by 2025 “at a blended export cable materially reduces offshore wind sector, which is world records for tidal generation. price that would be competitive construction time and cost. rapidly cutting supply chain The baseline may be low but with offshore wind tenders”, Bigger turbines [the company costs, with gains in foundations, CEO Tim Cornelius channels according to Cornelius. aims to double the turbine cabling and construction vessels Canute with his belief in the That sounds optimistic, given size to 3MW] means greater all applicable to tidal power. inexorable rise of tidal power. the company bid £150/MWh output impact, because water Moreover, Cornelius believes The only question in his mind in the contracts for difference is 800 times denser than air. the pivot away from fossil fuels is whether it is developed in (CfD) auction last September “We are also moving has begun in earnest. “I would the UK or overseas, though the but Cornelius begs to differ. “It towards more synchronous challenge you to find a large

26 April/May 2018 theenergyst.com emerging technologies

now there would be 5GW company continues to push installed, simple as that.” for a bilateral CfD, or similar construct, “just some basic Mutual benefits? inventive to stimulate build up,” I would argue it is Tidal power is nowhere near says Cornelius. “It would be a not that challenging cost comparable to large shame to see the pipeline built thermal plant. Yet UK power out entirely overseas when it an environment. market economics are such has been developed in the UK.” The challenge is that even CCGT developers are The government of 2013 more about bringing unwilling to build a mature, awarded a bilateral CfD to down the price so relatively straightforward enable EDF to make a final form of generation at present investment decision on Hinkley that tidal power without government support. C. Could tidal power reach can compete with However, Cornelius says if gigawatt scale before new thermal generation the French government backs nuclear is commissioned? its proposals, both the UK “With a very modest and France will benefit from amount of support, the answer lower tidal power costs. “It is yes,” says Cornelius. would give us the economies of scale to bid into the [UK] Wyre power, firepower CfD auction much more Other tidal developers are also aggressively,” said Cornelius. lobbying hard for subsidies, How aggressively? with the firm behind the “Somewhere between Swansea tidal lagoon warning the clearing price of the last it will lay off staff if support one, £57.50, and Hinkley C is not soon forthcoming. [£92.50 plus inflation]. “ Atlantis owner Simec has an How confident is Atlantis interest in the Swansea project that the French government but Atlantis has outlined its will back its plans? own plans for a tidal barrage, “We have to be careful in what a 160MW project in the Wyre we say, but are very confident estuary, which it touts as “the that they are supportive of what pathfinder to bigger projects”. we are doing. They are sitting Cornelius says it is a “very on a fabulous asset and have sensible” project that would cost a strong history in supporting “a couple of hundred million” tidal power. The prime minister in capital expenditure. He is [Édouard Philippe] is a former convinced – while stressing mayor of Le Havre and it would it is a personal view and be hugely positive economically not necessarily the opinion for that area, where we receive of the company’s board or unbelievable support from local management – that the Wyre government,” says Cornelius. project will go ahead. “So we are quietly confident Moreover, the company’s that we will get good support.” recent reverse takeover by Simec, part of the GFG Alliance utility anywhere in Europe that “We would argue to the UK plans owned by Sanjeev Gupta, is not making noises about contrary. [UK] offshore oil and In the UK, Cornelius says means it has a “big brother becoming more renewable than gas is only 50 years old, yet Atlantis has “392MW consented coming in – a billionaire hydrocarbon focused,” he says. it is now considered mature. [via MayGen] that could be partner with balance sheet, “But more important is We are borrowing oil and done tomorrow with a CfD”, gravitas and firepower,” says oil and gas. They are talking gas knowhow. We broke the and believes with additional Cornelius. “The last six months about making colossal record for installing a turbine permitting the company could of accelerated success is very investments in the things in under 60 minutes. So I potentially develop up to 1.5GW. much due to their involvement.” they understand, which is would argue it is not that Cornelius says MayGen is By aligning that firepower the offshore environment.” challenging an environment. “fully consented to participate with the clean growth plans That expertise will be key to The challenge is more about in the 2019 CfD auction” and of both the UK and French unlocking marine power, says bringing down the price so “understands the need to be governments, plus others Cornelius, countering arguments that tidal power can compete competitive”, though believes around the world, Cornelius that the seabed is simply with thermal generation,” says it is “slightly unfair to have to suggests the tide will turn. too harsh an environment Cornelius. “If we were the compete against offshore wind”. “If governments are willing, for power generation. same price as CCGTs, right Alongside the auction, the industry is ready to deliver.” te theenergyst.com April/May 2018 27 CommFEAT. sprerceaiald buildingssplit

Better use of BMS lowers bills Aimteq’s maintenance and monitoring of the BMS at the UK facility of KBR has contributed to energy consumption savings of nearly £22,000 during 2017, shaving almost 8% off the bill

he maintenance thought a fresh pair of eyes emissions of 100.5kg CO2e. and monitoring could make new suggestions On average, the site is of the building for improvements. saving 7.68% on its energy Tmanagement system Also one of the drivers for bills every month. by Aimteq at KBR’s UK facility changing suppliers was the As a point of note, because has contributed to the site potential to achieve reductions We were not making only the main meters can saving nearly £22,000 in in energy consumption full use of its [BMS] be monitored at KBR, it is energy consumption during and carbon emissions. capabilities and impossible to say categorically 2017. It has also helped Aimteq worked up a proposal that the savings are 100% cut carbon emissions. that set out how KBR could thought a fresh pair attributable to the new BMS. KBR has operations in 40 achieve and maintain its of eyes could make However, KBR suspects countries and approximately environmental objectives, new suggestions for that the majority of the 34,000 employees worldwide. reduce energy consumption, improvements savings could be attributed Its core business streams and proactively analyse to Aimteq’s activities in include the full life cycle performance data to avoid the previous 12 months. of defence, space, aviation systems failures and reduce “Aimteq proved both flexible Aimteq’s Remote Operations and other government overall operating costs. to our specific requirements and Centre (ROC) saves energy programmes and missions. competitive on cost, so we had and prevents costly site visits. The UK headquarters, in no hesitation in appointing them Reports can range from pump/ Leatherhead, Surrey, had to the project,” says Bennett. motor efficiency, occupancy a phased upgrade of the profiling, sequencing BMS system to a Siemens Many happy returns strategies and start-stop Desigo Insight prior to the One year after Aimteq planning, through to energy- commencement of Aimteq’s was appointed, the KBR saving strategies, operational maintenance contract. says the BMS is providing status monitoring, sensor According to Steve Bennett impressive returns. The calibration and sub-metering. from KBR’s real estate services, 7.7% site, which comprises two “We particularly like the the company did not really main buildings, has reduced site analysis report, PPM have any issues with the its energy consumption by service sheet, remedial works operation of our BMS, it just 243,953kWh, equating to a sheet and Aimteq’s energy- felt it was not making full Average monthly saving financial savings of £21,955.81 efficiency recommendations,” use of its capabilities and on UK site’s energy bills and a reduction in carbon concludes Bennett. te

28 April/May 2018 theenergyst.com Flowmeter facilitates tenant management

E2 Services, a provider to perform effectively. of demand-side energy The U1000 flowmeters are management and energy cost configured for pipe size so only reduction programmes, has nominal configuration on site is installed a Micronics U1000 required, reducing the need for flowmeter in a multi-let office intervention – essential in such space in Portsmouth to enable a client-orientated business. its client to accurately recharge The easy-to-follow menu made their tenants for energy. it a cost-effective alternative Mike Stafford, E2’s energy to a traditional in-line meters. services director, had used Furthermore, dry servicing Micronics flowmeters on a is possible so that downtime previous occasion to help a is kept to a minimum, which real estate investment advisor is allowing E2 Services to and property management minimise disruption to tenants. company appropriately Stafford said of the apportion costs for gas U1000: “Installing the use on a former IBM site meter has meant that E2 in Portsmouth, so knew can offer more robust tenant that it could be relied on recharging for our client.” No flickering, lower maintenance costs

amlite Lighting was to the latest generation LEDs.” chosen to complete an In addition to providing LED Textensive upgrade of lighting, Tamlite’s design team Thyssenkrupp’s site in Milton recommended the installation Keynes, which delivers products of sensors to minimise for the aerospace industry. unnecessary illumination. The “In the narrow stock aisles the Tamlite MODLED LG PRO lighting was insufficient, and fittings supplied for the office there were also replacement and areas have recessed panels maintenance issues stemming and are fitted with I-Tech from the older fluorescent low glare diffuser optics and health and safety and facilities produce up to 125lm/W.BEG manager fittings,” explains “There had been issues with Thyssenkrupp’s Nathan Blanks. some, such as flickering,” says “We also wanted to reduce Blanks. “We knew shifting our environmental impact and to LED would eliminate benefit from the energy savings this inconsistency as well as that would result from switching lowering maintenance costs.” theenergyst.com FEAT.Comm SINGLEercial s pbulitildings Efficient and controllable Energy efficiency was a key factor in Trox air handling units being chosen for the award-winning university of Huddersfield Oastler building

ustainability was social spaces and lecture remote control or web a key priority for rooms, to long, tall corridors browser, and the AHU’s the University of and individual study booths control capabilities make SHuddersfield’s £28m for language students integration easy throughout Oastler Building. The high- requiring sound attenuation. the air distribution system, efficiency TROX air handling The energy efficiency of the monitoring and controlling units at the heart of the TROX X-CUBE air handling dampers, duct sensors, volume HVAC system are contributing unit was a key factor in its flow controllers and fire to the energy efficiency of selection for this project. dampers with a greater degree the building, which has The integral variable of precision and immediacy achieved a BREEAM flow control technology than is typically possible Excellent rating. facilitates room-by-room using BMS control alone. Designed by AHR, the air management, adjusting The X-CUBE enclosure building’s levels of automatically to requirements. incorporates a number of environmental performance Designed to connect features to ensure low leakage secured its place in the 2017 seamlessly to a centralised and optimised heat recovery. Local Authority Building BMS (via Modbus TCP, In addition, the attenuators, Control Grand Finals, Ethernet or BACnet), the with aerodynamically following its triumph in the X-CUBE’s built-in control profiled frames achieve regional competition. technology, available as 30% less pressure drop Featuring a curved frontage standard, avoids the need for than conventional silencers. facing out onto Huddersfield’s complex or expensive bespoke Distance pieces in variable ring-road, the architectural TROX X-CUBE’s built-in programming of the BMS. widths can be used to design of the different zones control technology avoids Estates management individually adjust the professionals and building distance between the created a significant air the need for complex or management challenge. services engineers can splitters. Efficient IE4 expensive bespoke Air handing and ventilation interface with the air motors also contribute to demands vary from dynamic programming handling unit via touchscreen, its energy performance. te Leeds gallery puts the spotlight on the art

eeds Art Gallery has undergone a create wall washing effects and have tight £4.m refurbishment, during which spot lighting to highlight our exhibits Lthe lighting throughout the gallery and enhance our visitors’ experience. We was upgraded and the cladding from the can also control the lighting easily and central gallery removed to reveal a stunning adjust the scheme when we need to.” double-height original barrel-vaulted ceiling. The spotlight’s beam angle can be adjusted Now fully restored, the glass roof is from 10° to 70° and has a dimmable range providing the gallery with increased of between 5-100%. In addition to this, the natural daylight and works in harmony position of the spotlight can also be physically with the ambient lighting offered by adjusted, with a rotation of 355° providing Concord Beacon Muse spotlights. a near full rotation from a fixed position. The team at Leeds Art Gallery worked The Concord Beacon XL Muse can also closely with Concord to select the luminaires incorporate a multitude of customisable that best met their requirements, and aspects, with options for Sylsmart wireless selected a combination of the Concord dimming available through App Control. Beacon XL Muse and the Beacon Muse II When paired with a smartphone via a luminaires installed on the Lytebeam track. free application, scenarios can be set Sarah Brown, principal keeper at Leeds up with single or multiple luminaires, Art Gallery, explains why the Concord and light levels can be set according spotlights were chosen: “We can now to the needs of the end user. te

30 April/May 2018 theenergyst.com

Commercial buildings

Condensing unit Seeing the light for commercial BEG helps electrical solutions business switch on to energy efficiency refrigeration

Panasonic, which has more than 10 years’ experience in developing technologies using CO2 as a natural refrigerant, has announced the natural CO2 4kW/2HP condensing unit for commercial refrigeration. The units offer a stable and reliable system that helps to maximise energy efficiency. Furthermore, the units can be set to run at low and medium temperatures with four initial settings, which can be modified by turning a simple and user friendly rotary switch to further enhance energy savings. For installation, Panasonic is offering a one box solution that includes the EG has delivered because the area was open-plan normal switch-in sensor for fast condensing unit, a panel an integrated and the sensor is designed for traffic areas, was installed in pre-programmed controller, lighting control rooms where there is continuous the lobby, stairs and bathroom expansion valve and sensors. Bstrategy to a major daylight evaluation. The PD9 is areas. BEG also supplied its The units are designed UK electrical engineering also favoured by many clients IR-RC adapter, which means all to fit into smaller spaces company in Oxfordshire and because of its design and the its the sensors could be controlled with dimensions of (HWD) helped it become energy size, about the same as a £1 coin. by the Darke & Taylor facilities 930mm x 800mm x 350mm efficient in the process. In the offices where Darke management team via the and weight of 67kg. Darke & Taylor, a multi-award- & Taylor’s designers worked, BEG Smartphone App. winning electrical solutions BEG supplied the Luxomat Simon Newton, Darke & business, required a lighting PD2-M-DALI/DSI-FC sensor. Taylor commercial director, control solution for its new office This detector is a master-type said: “The BEG Luxomat space in Blenheim Office Park in recessed DALI dimming sensor lighting sensors are an integral Long Hanborough that would designed for daylight control part of the energy efficient reduce its operating costs. of rooms where there are only approach we took to lighting BEG provided a number of minor movements. Luminaires the new office space, and work the master-type Luxomat PD9- are controlled and adjusted excellently in conjunction M-1C-FC occupancy sensors with daylight brightness. with the entire range of LED for the main office. This was The Luxomat PD3N-1C-FC, a luminaires we installed.” te

Commercial Buildings

etwork Rail has fitted its Goodlight LED lighting from NLED Eco Lights into all 18 platforms and the concourse at London’s Liverpool Street Station. Liverpool Street, Britain’s third-busiest station with more than 66 million passengers annually, is seeing a significant saving in electricity costs and a reduction in its carbon footprint in addition to better quality lighting. Adam Thackeray, works delivery manager for Network Rail, comments: “We decided to move to LED lighting to reduce our carbon output, reduce costs in terms of power More light for less consumption and to improve Liverpool Street Station is cutting electricity and carbon savings after the lighting level and quality in public areas of the station. The an LED lighting upgrade predicted to pay back in 12-18 months opportunity to reduce costs for lamp replacement by moving the relamping to proceed with appreciation for the improved drop of approximately 40°C from a two-year to a five-year little disruption. More than station environment. at the exterior of the globe cycle was also a significant 3,500 lights were replaced by Liverpool Street Station is fixtures, which should improve consideration. LED lighting will two teams of two operatives. seeing both an increase in reliability as well as efficiency. also increase the efficiency of They worked from two scissor light levels and a reduction in The energy saving from emergency lighting, reducing the lifts on a permanent night shift energy demand following the the new lights is over load on the battery/generators during the five-hour window relamping. The station has 800,000kWh per year from and reduce the temperature offered by station closing hours measured an increase in Lux the platform globe fixtures signatures of lighting and over a period of six months. levels on the platforms and alone. Thackeray estimates heat related failures.” Some commuters shared concourse, from approximately that the new LED lighting The Goodlight LED lamps Tweets about the improvement 75 Lux to 210 Lux with uses about half the energy of can easily be retro-fitted into and many of the staff that Goodlight. At the same time the old lights and will pay for the existing fittings, allowing work at the station expressed there has been a temperature itself in just 12-18 months. te The light is right for Bristol’s Foundry tech hub igh-efficiency The resulting installation LED lighting and uses Glamox Luxo GIR LED Hsensors have been industrial linear, fittings installed throughout The as well as daylight and Foundry – a new learning occupancy sensors, ensuring space and hub facility for that light is only delivered enterprise and technological when and where it is required. innovation in Bristol. The work was completed to Described as an “industry- time and to expectation. facing enterprise zone”, the “We are very impressed by new facilities were developed the quality and consistency in line with UWE Bristol’s of illumination that it stated emphasis on the Bristol architectural designer had to be conducive to has delivered to what is continual improvement of its James Gray to put in an what might be termed an an extremely important environmental performance. enquiry to Connected Light. ‘industrial theme’ present in addition to the UWE Bristol’s It follows that energy- The overall aesthetics were The Foundry while making facilities. The lighting really efficiency was a primary a key driver in conjunction it possible for a uniformity of had to be ‘right’ for such objective for the lighting with the environmental luminance to be maintained a flagship project – and it system, prompting UWE considerations. The lighting commented the CL team. is,” concludes Gray. te

34 April/May 2018 theenergyst.com

Warm words won’t work Decarbonising the UK economy is the challenge of our times. What are the options? The Energyst asked industry experts for their views

he power sector levels, the Committee on Climate Most people interviewed or must be a policy priority.” is delivering on Change (CCC) says heat must be surveyed believe the solutions Tim Rotheray, director of the decarbonisation. virtually zero carbon, to make up encompass a combination Association for Decentralised TLow carbon sources for other sectors that cannot fully of technologies and fuel Energy, agrees. “Energy accounted for 50.4% of decarbonise. In its last report, sources. But all said greater effi ciency has to come fi rst, yet power generated last year, the CCC said only around 4% energy effi ciency is critical. we have seen a real reduction according to latest government of heat in buildings came from in work on energy effi ciency. data, overtaking fossil low carbon sources in 2016. Prioritise demand reduction That is where I would start.” fuels. Emissions from the David Gill, head of customer “The UK has some of worst Tighter building standards in energy supply sector have energy solutions at Northern quality housing stock in both domestic and non-domestic fallen 57% since 1990. Gas Networks, puts the scale Europe,” says Richard Lowes, sectors would be useful, noted By contrast, transport of the task into context. a researcher at the University Rotheray, while Exeter’s Lowes emissions have fallen 1% “Reducing emissions 80% of Exeter, specialising in heat believes Passive House should be since 1990. However, global by 2050 is the biggest energy policy and governance. the de facto housing standard. vehicle manufacturers are challenge facing the world “People almost expect their mobilising, with governments today,” he says. “It is like houses to be a bit mouldy. Incentivising businesses around the world committing having to rebuild your house, Single-glazed windows are While domestic heat is by far the to phase out petrol and diesel from scratch, by Friday.” still a thing. There is so much larger challenge in consumption engines. There is a plan and So what are the options: basic stuff that could take place terms, The Energyst’s readership where there is certainty, results hydrogen; electrifi cation; heat to cut carbon and improve is largely industrial, commercial inevitably follow. The plan networks; biogas; hybrids? people’s lives. Energy effi ciency and public sector organisations. for heat is not yet clear. Scale of the task National Grid: Incentivise energy e iciency Progress in decarbonising power is the result of relatively and heat pumps to hit 2050 targets stable long-term policy. Yet the National Grid’s most recent Future Energy Scenarios states that: "In order to achieve the [2050] UK’s total energy consumption carbon reduction targets, there will need to be high levels of thermal retention in homes and remains more than 80% reliant growth in heat pumps. For this to happen incentives will be needed to; make homes more on fossil fuels and about half of thermally e icient, quickly retire gas boilers and encourage the adoption of heat pumps." consumption is heat-related. National Grid’s ‘Two Degrees’ scenario is the only one in which the UK meets its 2050 carbon To meet the Climate Change targets. It would require heat pumps becoming the main alternative to gas boilers. It also Act’s 2050 target of an 80% assumes the UK makes 30% energy e iciency gains by 2030. reduction on 1990 emissions

36 April/May 2018 theenergyst.com Heat

What might compel them to invest in low carbon or Climate Change Committee renewable heat solutions? Those surveyed for this on low-carbon heat report offered mixed views on the Renewable Heat Incentive The Committee’s most recent report to government made (RHI). Roughly half said it some key recommendations on heat: has been effective, roughly “Deployment of low-carbon heat cannot wait until the 2030s. half said it was not, citing Low-regret opportunities exist for heat pumps to be installed complexity, bureaucracy and in homes that are off the gas grid, to install low carbon heat networks in heat-dense areas (e.g. cities) and to increase bias towards biomass. Some said volumes of biomethane injection into the gas grid. it had encouraged ‘gaming’ or T im Rotheray “These opportunities can be started within funding that profiteering and the programme has been agreed to 2020, although this could be better had not been applied fairly. targeted. Further support beyond 2020 will need to be Conversely, others suggested agreed by 2019. guaranteeing that the RHI will “Beyond these low-regret measures, key strategic continue would result in the decisions will be needed on low-carbon heat for properties strongest signals and uptake of on the gas grid, especially those outside heat-dense areas. renewable heat technologies. ‘The main options for reducing emissions from heating The RHI is schedule to close in these buildings are electrification using heat pumps and in three years’ time, and it is repurposing of gas networks to hydrogen. It is important not currently clear whether that active preparations are made so that the Government is a modified heat support well placed to make decisions in the early 2020s, including scheme will replace it. undertaking hydrogen pilots of sufficient scale and diversity. “As large-scale hydrogen deployment would require use However, survey respondents of carbon capture and storage (CCS), a strategy for CCS suggested other levers, such as Richard Lowes deployment remains an urgent priority.” business rates and tax breaks could incentivise both energy efficiency and lower carbon heat. of renewables, according to customer and their bills. So would better incentivise heating Lesley Rudd, chief executive the ADE’s Rotheray, while the primary opportunity is appliance manufacturers to move of the Sustainable Energy renewables companies are to exploit the synergies that away from traditional products, Association, agrees. “Those levers working on ways to use are arising to end up with although Exeter’s Richard are at government’s disposal, excess renewable generation best value energy system.” Lowes believes manufacturers but would require a joined-up to create and store heat. must also be more flexible. approach from Beis, Treasury “We are only just starting Further integration “There is a role for and Housing, Communities to scratch the surface of the While Ofgem is consulting manufacturers to take the lead,” and Local Government.” convergence of heat and on how to bring more third he suggests. “Most of the big Rudd says the scale of power,” says Rotheray. parties into innovation players also produce heat pumps the challenge posed by “One way to deal with allowances, Ian Lock, business as well as gas appliances, but decarbonisation requires removal [intermittency] is to provide development director at Baxi some are quite protectionist of departmental silos: “We are flexibility through heat. Heat Heating, believes there is scope and anti-heat pump.” talking about whole economy is inherently storable; it is very for regulators to create more However, if demand was planning. Decarbonisation is easy to store in hot water and integrated frameworks that created, Lowes believes any bigger than energy, which in itself other materials and is a cost enable better collaboration manufacturer would deliver. is a hugely important issue.” effective way of disconnecting between manufacturers. “It is not that capital intensive energy generation and final “If you were given the brief for them to put up a new Collaboration and whole energy consumption,” he added. to decarbonise a housing manufacturing line if they had system thinking “If you have a thermal store, development, for example, demand. So it needs a powerful Bringing the old energy and you can produce heat at times it would be worth looking drive from government [to climate change department of low electricity or negative at cross-fertilisation of key make that happen] and a lot of into business, energy and prices and use the store to central services: heat, light these firms would jump in.” industrial strategy (Beis) is supply at a different time. In that and water,” says Lock. “There positive in that sense, adds way you can provide not only is an interlink between those Hydrogen? Rudd. Meanwhile, energy balancing services but also reduce manufacturers, but no support While heat pumps are the companies recognise they must investment in the power network. to explore those links.” most cited technology under collaborate more closely, with Exploiting those synergies is “That Ofgem is consulting consideration by survey regulation and policy starting central to cost efficiency of the is great, but how to we get respondents, installations to to recognise the need for energy system,” says Rotheray. from concept to deliverable date are well below the run rate ‘whole systems’ frameworks. “If we don’t, we will opportunity? The clock is ticking.” required to hit carbon targets. Aligning heat and power have to build unnecessary Some stakeholders believe more closely can solve issues infrastructure, and all of Supply and demand the cost, disruption and created by growing penetration that will end up with the Setting a clear policy framework behavior change required by » theenergyst.com April/May 2018 37 Heat

a wholesale switch to heat The UK’s pumps are significant barriers. total energy Gas networks are keen to consumption pursue a hydrogen approach. remains more than While high levels of hydrogen 80% reliant on would require new appliances, fossil fuels gas firms believe it is a less costly and less disruptive approach than electrification, although it hinges on simultaneously developing and deploying carbon capture and storage, which is by no means a given. Ian Lock However, others believe there is a danger of putting too much faith in hydrogen. “You would need an awful lot of hydrogen [to deliver UK space and water heating needs],” says Andrew Haslett, chief engineer at the Energy Technologies Institute. He points out that other areas of the economy are “very difficult” to decarbonise without hydrogen, Andrew Haslett for example, “parts of industry and transport, which would take it away from buildings”, he says. part of the solution. green gas now contributes 100TWh of low carbon gas per “Can you make enough Major energy suppliers around 1% of demand. annum, enough to meet roughly hydrogen quickly enough and are starting to offer ‘green’ “Cadent’s work suggests a third of domestic heat demand. cheaply enough? It is not clear gas backed by Renewable [green gas] could be taken Energy from waste is a divisive that you can. So … it is not a Guarantees of Origin and there to around 30% with the issue, with concerns from host silver bullet. There is a danger is demand from businesses that right policy and technology communities usually strongly of hydrogen running away as wish to buy renewable energy, development; there is potentially evident in planning decisions. But ‘the answer’, when it is not yet not just renewable power. ability to synthesise gas from it is a significant source of heat clear it is a practical answer.” According to Energy Networks a wider range of feedstocks, and power in continental Europe. Haslett says policymakers Association head of gas Matt for example,” says Hindle. In the UK, energy from waste and industry must therefore Hindle, there are now “90 plants Cadent is a backer of a powers heat networks in Sheffield “be cautious not to drop across the country connected to gasification plant in Swindon and Nottingham, and from everything that might be the gas distribution networks that will this year start to produce next year, will do so in Leeds. part of the solution”. injecting gas [enabling cleaner synthetic gas, or bio-SNG, heat] without any change from household waste for grid Waste heat: coalition Biogas and energy from waste to consumer behavior”. injection. The company claims of the willing? Biogas production is increasing Hindle points to research by bio-SNG and anaerobic digestion Less politically sensitive than steadily and may represent gas network Cadent that suggests have the potential to deliver heat from waste is wasted heat.»

heating is going to be really hard and Big bills cost votes something that is difficult to sell to voters and consumers.” “Basically, all of the options are expensive And that’s the smart ones. and will be disruptive in one way or “So it really is in the difficult box. another,” says Richard Howard (pictured), Decarbonising power is relatively head of energy research at Aurora. straightforward. For electric vehicles, the Two years ago, while at think tank Policy clue is in the name. But heat… nobody is Exchange, Howard wrote a report on heat clamouring to put their own money into it, that suggested electrification of 80% of so it becomes very hard. That’s not a positive homes would require capex of £300bn. message but that is where I’ve got to.” While less certain of its estimates, the But there is one obvious way to reduce report suggested a hydrogen approach peak heat demand, and therefore the cost might cost £200bn. “Even the more of decarbonising it, says Howard. “Energy switched on politicians… basically efficiency is the one easy answer and there is acknowledge that decarbonising domestic definitely not enough being done on that.”

38 April/May 2018 theenergyst.com

Heat

sufficiently decisive and Published 2018 ambitious. Not an enviable task. “Whatever we do in heat The Heat Report – whether, electricity, biogas, hydrogen, heat networks - whatever route and whatever combination, there will need to be leadership and boldness on part of government in setting that out,” says the ADE’s Tim Rotheray. “But industry cannot and Anna Livesey Matt Hindle should not seek to put this all Produced by Supported by on government. We do need Baxi Heating’s Ian Lock suggests how do you make it appealing to move, and government central and local governments to businesses?” asks Livesey. has a clear role in setting the could help coordinate a push “Tying it to business rates vision and the structure. But This feature is taken from to match waste heat with local could be appealing and industry has a role in saying The Energyst’s 2018 Heat demand across the industrial Ecuity would be interested ‘this is what we can deliver’. Report, sponsored by Baxi and commercial sector. He in modeling that approach; “I’m confident that it Heating. The report contains believes most industrial estates whether it could be linked is achievable, but it takes expert views on decarbonising across the country could be to other incentives and what determination on both sides to heat and a survey of readers co-opted into heat matching would concentrate people’s make it work,” says Rotheray. on their attitudes to heat and programmes with the right minds on utilising waste heat. “The biggest risk is a the technologies they are incentive framework. Analysing and demonstrating reluctance to undertake the considering. Anna Livesey, senior [whether waste heat and local of scale of change that we Download it free of charge at: consultant at Ecuity, thinks demand] could be coordinated need. Government is rightly thenergyst.com that concept is worth would be really valuable.” proud of the results being further exploration. delivered in wind and solar; “There is certainly an Keep options open that is what happens when awareness issue [around While government must set industry and government work waste heat]. But I expect there out frameworks for businesses together with clear leadership could also be regulatory or and investors to decarbonise from both sides,” he says. risk issues. It is complex: Who heat, it must do so without “That now needs to would you get to drive it and picking winners, while being happen in heat.” te

heating – and that is where Eon wants E on: Power’s to play a key role.” He says heat and transport are at a done, now similar juncture to renewables “10 or 11 years ago” and points out that while focus on heat the UK has succeeded in delivering almost 40GW of renewable generation, and transport “success was far from a forgone conclusion back then”. Eon CEO Michael Lewis (pictured) Lewis says in 2008, Eon had two believes the UK must fully concentrate offshore projects under construction, on heat and transport, with power “both hugely over budget and decarbonisation now in hand. late”. The firm had another two in Speaking at Aurora’s Spring Forum, operation, both beset by technical Lewis applauded the policy stability of difficulties. Meanwhile, the London know that the government stood successive previous governments in Array project “came that close to not behind us, which they did, and created delivering renewables. going ahead, and would not have a world class industry.” “[Renewable generation] has been gone ahead unless government had That foresight should now be a huge success, but in many ways, moved to two Rocs”. applied to decarbonising heat and that is already done,” says Lewis. Giving offshore wind developers transport, says Lewis, which is where While there are “some issues around additional subsidy at that point, he Eon will focus more fully. “We believe intermittency” to solve, “we have suggests, was now bearing fruit in our capabilities are better deployed [achieved] renewable, low and zero enabling the economies of scale that where there is still a problem to carbon generation at a lower price are leading to cost reductions. be solved,” he said, suggesting the than conventional generation. Now “We were about to make an £800m starting point should be “making the we need to turn to transport and investment decision and needed to existing system more efficient”.

40 April/May 2018 theenergyst.com

Heat Northern heat and powerhouse

At The Energyst Event, Marissa Granath, Gateshead Council’s energy business development officer, outlined how the local authority is providing cheaper heat and power to commercial and residential customers, and funding front line services. Brendan Coyne reports

ateshead Council commercial buildings, plus started thinking about 350 social housing customers. a town centre heat Via the private wire, the Gnetwork in 2010. council currently supplies 10 Today it has the heat network customers with electricity. but also provides power to “But it is not just about the local businesses via a private numbers,” added Granath. “We wire, and earns grid balancing are delivering low-cost heat to revenues via a 3MW battery. some of the most vulnerable As such, the energy centre people in Gateshead; reducing is delivering benefits greater energy costs for the council; than the sum of its parts – improving the viability of local and the council will apply the businesses by reducing their learnings to its next district energy costs; and attracting energy schemes, which are development to the town centre already in planning. by providing connection-ready For other local authorities access to a lower carbon, lower mulling similar projects, What’s under the hood cost source of heat and power.” Granath offered succinct advice: Moreover, she said: “We have focus on customers and benefits The Gateshead scheme includes 2.5km of district heating got this really cool building, over pipes, wires or technologies. network, 5.5km of high-voltage private wire network and which is contributing to the 3MW of battery storage. The energy centre houses 2 x 2MW redevelopment of the town Moving target CHP engines, 15MW worth of back up boilers, plus 250,000 centre and helping to put The Gateshead project evolved litres of hot water storage housed in the pink containers that Gateshead on the map.” over time, explained Granath. make the scheme instantly recognisable. “For us, none of the Risk management individual elements stacked even better”, said Granath. “We without their challenges. Granath said becoming an up by themselves. Not the heat earn revenue from grid services Communication and internal energy supplier “is really network, not the private wire, not at the moment, but in future we buy-in is key to getting it over hard” and that the council the battery storage. But bringing have some large developments the line. For a local authority, must also think carefully them together made the coming on to the network. So that is senior leadership but about managing risk. business case viable,” she said. [the batteries] mean we can also political leadership.” For example, it gives greater “Because we have neither manage that peak demand and Talking about outcomes discounts to customers that a huge heat load nor a huge get the most out of the asset.” rather than technologies, and take longer-term contracts. heat source, we didn’t have a Which is why Granath attaining buy in means “when “But there are things you can’t viable district heating network. says focusing on customer new opportunities come along, foresee,” she said. The ‘Beast But adding the private wire benefits and outcomes rather such as battery storage, you from the East’, for example, enables us to sell electricity than technologies is crucial. can get them approved quite created “insane” gas prices. [from the centre’s twin CHPs] “Schemes like this are not quickly because you can tell “In some ways, the good to our customers rather than the story of how it will deliver thing about being a local back to the grid. We make benefits”, said Granath. authority is that you can take more money as a result and a longer view. But the further our customers get a cheaper Benefits and returns out you look, the more risk is price, creating a win-win The district heating network inherently ‘baked in’ to your situation,” Granath explained. investment was £25m over a business case. So it is not easy.” “The private wire makes it lot 40-year lifespan, with the council However, Granath said more complicated but it is what currently forecasting a return the council is “more than made the business case viable.” in years 16/17, said Granath. happy” to share learnings The council then took the It provides lower cost, and urged anyone planning decision to add battery storage, lower carbon heat to 12 similarly integrated heat “which made the economics Granath: ‘A win-win situation’ customers, mainly public and projects to get in touch. te

42 April/May 2018 theenergyst.com

Heat

the secondary circuit entering the new boilers and pumps. The complete plant room was fabricated and built off- site at Bunton M&E Services’ workshop, dismantled and delivered to site reducing the total installation time on-site to just four weeks. For the boiler installation, two Wessex ModuMax mk3 WM254/508V modular condensing boilers were chosen. This combination consists of two stacks with two boiler modules in each, delivering a total output of up to 1,016kW and a turndown ratio of 20:1. The turndown ratio refers to the ratio of maximum capacity to Answering the works minimum capacity. In St Paul’s case, the boilers can deliver any output from 50.8kW up to 1,016kW. This ensures the manager’s prayers load is matched to warm the building up, and in periods of A new heating system at St Paul’s Cathedral has cut gas consumption by low heat demand, the boilers almost 40% while respecting stringent rules governing Grade 1 buildings are not constantly cycling and wasting energy. The modules can easily be stacked on top of he boilers at St Paul’s To avoid changing the flues, a plate heat exchanger was each other and side by side to Cathedral were the cathedral initially planned installed. This divides the offer a variety of installation failing. The challenge to replace the older system primary and secondary circuits options – and, crucially, they fit Tfacing those tasked with pressure jet steel shell and ensures a highly efficient through a standard doorway. with replacing them was boilers. Buntan, however, heat transfer with minimal The cathedral has already felt that the cathedral is Grade I recommended Hamworthy’s losses between the two. It also a significant change from the listed, prohibiting alterations Wessex ModuMax mk3 stops any dirt and debris from time prior to the installation of without special permissions. condensing modular boilers. the new boilers. According to But Hamworthy’s modular “We have used the Wessex Robin Buntan: “The speed of boiler system and two high boilers since they were heat up has greatly improved. performance calorifiers have introduced and we know they Previously it would take a week delivered despite constraints, are very reliable. They are space to heat the cathedral up from and the cathedral has saving, great in refurbishment cold, but now it only takes one subsequently reduced its gas projects and buildings where you day; the heating runs 24/7 consumption by close to 40%. can’t change the building fabric, on weather compensation.” The previous heating system such as St Paul’s,” says Buntan. Weather compensation consisted of three steel shell Tom Fletcher, works manager means a small outdoor sensor is boilers fitted in the 1960s, which at St Paul’s Cathedral, adds that fitted to adjust heating controls received a burner upgrade in the boilers were also chosen for according to outside temperature the 1980s. Problems with the their efficiency, as the team had changes to ensure more efficient equipment occurred and were been set a target of reducing operation of the heating system. fixed until the boilers finally gas usage by 10% in line with Fletcher says the efficiency started leaking and could not sustainability ambitions. savings have beaten expectations. be repaired. At this point, Robin Six months prior to the “Since the installation, we have Bunton from Bunton M&E installation of the boilers, found that we have managed Services advised replacement two MagnaClean filters were to reduce gas consumption boilers were necessary. installed to clear the heating Previously it would by close to 40%. This means The cathedral sought reliable system from sludge and debris, take a week to heat that we have not only reduced and energy efficient boilers followed by a system flush. To the cathedral up our carbon footprint but have to meet its high heating and create hydraulically separate also benefited from significant hot water demand while systems from the new boilers from cold but now it savings on our gas bill, well above keeping running costs down. to the existing radiator system, only takes one day our initial project target.” te

44 April/May 2018 theenergyst.com

Storage You only live twice

Used EV batteries as storage systems, which can be cycled intensively, could enable firms to earn more than with new systems, claims Connected Energy CEO, Matthew Lumsden

econd life electric the sustainability of a second terms of controls and safety vehicle batteries could life system versus a new battery mechanisms,” he said. play a major role in storage system, “if you look at “The system is super safe. Sbalancing the grid – the embedded energy, carbon The batteries have all of and potentially help companies and natural resources in the the metal housing they had earn more money than via battery, we are getting batter when in the vehicle, all of the new storage systems that are value from them, perhaps vehicle manufacturers’ safety bound by warranty constraints, doubling their lifespan.” mechanisms, then our box with believes Matthew Lumsden, its own safety mechanisms as CEO of energy storage solutions Go hard, make more well,” added Lumsden. “So it’s a provider Connected Energy. Asked how the system compares Lumsden: Use the batteries to metal box within a metal box.” Others share his conviction. with a new storage system capture the opportunity Connected Energy’s power Engie and Macquarie recently on whole life cost, Lumsden control module “talks to invested £3m in his company, said the key comparator is batteries; they are lower batteries in their own language” which takes second-hand whole life revenue. “If we use cost, so replacing the battery via the CAN protocol, so that battery packs from Renault the batteries as productively packs can be cost effective.” the battery is controlled in electric vehicles, to create as we can to maximise Lumsden said the batteries the same way as it is in the storage systems ranging revenue, it might mean faster Connected Energy uses are vehicle. In effect, it does not from 60kWs to megawatts. degredation,” he said. typically seven years old and ‘know’ it is not still in a car. These systems can be “The trade off is higher about 25% degraded. As such, “So providing frequency used more intensively than lifetime costs but more revenue. the footprint of its systems is services, for example – short, some warranties for new Or you can use them less “around 50% bigger” than a sharp peaks of charge and batteries allow. That means intensively: the batteries degrade new system. Lumsden said the discharge – is very similar owners can maximise cycling more slowly, and therefore you company is not attempting to to somebody putting their to take a larger share of the have lower lifetime costs, but make them as small as possible, foot on the accelerator and spoils currently available. that approach does not optimise more “on creating robust, the breaking cycle of an Speaking at The Energyst revenue,” said Lumsden. low cost, versatile systems”. electric car,” said Lumsden. Event, Lumsden cited Bloomberg “So it’s quid pro quo. We While Connected Energy projections of a global non- can operate to customers’ promotes opportunities Where next? automotive storage market requirements whether to around intensive use, The company is talking to both of about 300GW a year by maximise revenue or longevity,” Lumsden said its second life public and private sector end 2030, with second life batteries he said. “But once you have the batteries are inherently safe. users. Dundee City Council representing somewhere power electronics, the balance “We use the battery packs will use one of its boxes as part between 40GWh and 340GWh of system, they are exactly as they are of a solar-battery EV charging a year at that point. That creates second life provided by port. Meanwhile, Lumsden a significant liability for car manufacturer. says industrial and commercial manufacturers, said Lumsden, So they companies are interested but an equally significant benefit for all the usual behind-the- opportunity to harness proven from all meter applications, with firms technology. He said the the OEM’s able to visit the company’s systems can be used investment Norfolk R&D centre to see for providing flexibility in “how it works in the flesh”. services, renewables Lumsden said aggregators, optimisation, peak “certainly those with larger shaving and arbitrage portfolios”, are also interested while boosting resilience. in adding high-cycling Lumsden added that assets to their portfolios a “surprising” number “to run as often as is of enquiries are also based commercially sensible”. around sustainability. Connected Energy takes second-hand battery “We have a huge diversity of While he said Connected packs from Renault EVs and creates storage enquiries,” said Lumsden. “The Energy has yet to fully quantify systems ranging from 60kWs to megawatts key is to pick right one.” te

46 April/May 2018 theenergyst.com ndustrial and commercial businesses making investments in energy Istorage in the hope of making returns from frequency response are “gambling”, according to RedT chief executive Scott McGregor. McGregor’s firm makes flow storage devices. In simple terms, these provide longer-duration energy output rather than the short duration power bursts that are delivered by the likes of lithium ion or lead acid batteries. The company is trying to scale its UK operation and McGregor believes successful behind-the-meter I&C energy storage will predominantly be that linked to solar. Speaking at The Energyst Event, McGregor said he aimed I&C firms banking on to dispel “misconceptions” about storage as the great white hope of the energy industry. “There’s some interesting FFR are ‘gambling’ information bandied around the [storage] industry, but I RedT boss Scott McGregor says firms need to focus long-term on would say 80% is probably rubbish,” said McGregor. cutting energy bills with storage, not chase frequency response cash

Input and output “You don’t just buy an energy of your peak costs … and use opportunities along the way ion in tandem. He believes these storage container and make the asset as much as you can if you have the right assets.” hybrids, delivering up to 50MW, money out of it. It is all about to reduce your energy bill. It is will enable both capacity-driven what you put in and take out. about energy: cheap generation, Co-location with wind? services (which require longer Solar going in the top is what storing it and using it when you McGregor was asked at the duration output) as well as makes us money,” he said. need it ” he said. “That should conference whether in front of power burst applications, while “The second aspect is power give you 80% of your return [on meter storage co-located with “extending the life of the battery”. price models: in the UK, investment],” said McGregor. wind farms is currently viable. McGregor later told The wholesale prices have been going “The only guarantee is that He suggested wind “is not Energyst that he believes down over last 10 years and will policy will be ineffective, create a perfect [co-location] asset, RedT will “deliver at least continue to do so. What will go unintended consequences because the wind doesn’t blow one such project in the UK up is power price volatility.” and the market will keep all the time and you want to next year”, which will likely While grid services are “a changing,” McGregor added. be able to use your storage be in the region of 10MW. nice upside” they cannot be “So we have to build asset as much as possible”. At a smaller scale, McGregor relied upon over the medium assets that are flexible and However, he said “where you said “keeping things simple” term, said McGregor. infrastructure-based. Then put storage centrally across with flow storage will better “A lot of people have invested there will be additional a number of wind assets, I suit industrial and commercial in arbitrage and frequency believe that model works”. applications behind the meter. response, which are risky Meanwhile, McGregor “That does not mean that in revenues. Those revenues are suggested co-located solar and the future we will not bring out not locked in so you are at the storage would start to quickly a product that has a rocket- whim of the market,” he said. ramp up once solar farms come fuelled lithium [element], or “To be honest, I call it gambling.” to the end of their initial PPAs a super capacitor [alongside Instead, McGregor believes and “excessive” early subsidies. the flow machine],” he said. I&C firms should invest in “If somebody is interested, energy infrastructure that Hybrid grid-scale storage yes, we will do it. But the reduces their bills and makes use McGregor said the company is question is, are you going of existing assets, such as solar. McGregor: Banking on also modelling grid-scale storage to get the return from the “You want to wipe out all frequency response is risky using flow storage and lithium- additional complexity?” te theenergyst.com April/May 2018 47 Flexibility Should Ofgem consider derating DSR plus storage? Scottish Power wants Ofgem to derate DSR plus storage in the capacity mechanism, suggesting it could create a risk of capacity shortfalls. Aggregators question the logic. Brendan Coyne reports

fgem is mulling technologies but when it a proposal by comes to figuring out the right Scottish Power classification of embedded plant, Oto further derate a vertically integrated big six demand-side response (DSR) player is absolutely the wrong within the Capacity Market company to figure out what that (CM) where it uses behind-the- should be,” said Alastair Martin, meter storage – and possibly chief strategy officer at Flexitricity. to derate DSR more broadly. Martin suggested any firm each with different rules — Aggregators are not keen. pushing such a line might have technology moves too fast for The big six firm submitted a hard time justifying extending that, with new options that the proposal too late for the derating to all applicable span boundaries constantly latest round of rule changes When it comes to DSR technologies to some emerging,” said Oakes. “You that Ofgem plans to take figuring out the of its customers, particularly end up playing whack-a-mole.” forward, pulished late March. right classification a supplier that was trying He said the energy system However, the regulator of embedded to enter the DSR market. is not particularly good at said it would think about the He also highlighted that the specifying requirements. suggestion with a view to plant, a vertically reason a lot of DSR providers “It tends to look at what indicating its decision in 2019. integrated big six deliver for 30-minute durations technology can currently do and Scottish Power wants DSR player is absolutely is “because they are under a that uses batteries behind- the wrong company contract that specifies exactly the-meter to be subject to the 30 minutes. So if they are same deratings for batteries Alastair Martin, Flexitricity delivering for that duration, it classified as generating is because National Grid has units within the CM. classes, in particular, storage asked them to do that,” he said. Those batteries, following an DSR,” which it says “would “But there is huge variety earlier proposal from Scottish obligate the EMR Delivery Body within DSR and most Power, receive a percentage of the to consult on the derating factor forms can actually deliver full auction outturn depending to apply to the new Classes”. for quite a long time.” on how long they can produce Ultimately, Scottish Power says power: A battery that can that as “some other forms of DSR Odd discussion produce for 30 minutes receives may have duration limits … in due Graham Oakes, chief scientist at around a fifth of the full amount course derating and appropriate Upside Energy, said the derating while a battery that can delivery testing should be extended to all discussion was “kind of odd”. You can’t create for four hours receives 96%. applicable DSR technologies”. “Scottish Power’s proposal a technology Scottish Power would like the Aggregators have itself contains the fundamental same rules to apply to DSR that questioned the logic of problem — it tries to maintain neutral market by uses batteries. It believes leaving the proposal, particularly the ‘CM policy of technology subdividing it into a things as they stand creates a extending it across DSR. neutrality’ by creating yet bunch of technology risk of capacity shortfalls and another technology class. You increased cost to consumers. Wrong company can’t create a technology neutral classes each with Scottish Power suggests “There is always value in having market by subdividing it into different rules creating new “DSR technology different ways of classifying a bunch of technology classes Graham Oakes, Upside Energy

48 April/May 2018 theenergyst.com behind-the-meter batteries are complementary, not standalone, to flexible demand”. “Derating short-duration standalone batteries made sense; they can only discharge at their derated output for a limited time after which point they cannot contribute to alleviating system stress. On the other hand, a behind-the-meter battery shouldn’t be subject to a harsher derating factor if it is combined with flexible loads to form a reliable aggregated resource,” said Troughton. “What matters is the performance of the aggregated resource.” Troughton agreed with Flexitricity’s Alastair Martin that perceiving DSR as a time- limited resource is misguided. “Turn-down DSR is very different to battery storage. There is no hard cut-off time for an aggregated DSR resource to stop base its specifications on that. encompasses a broad range of responding. Some customers Hence the capacity market, and distributed assets,” he said. have limits, but very few of those much else, is driven largely by “Any new CM rules must are hard limits. Rather, it’s that what traditional, large generation recognise the different their opportunity cost will rise can do. People try to overlay characteristics and capabilities steeply if dispatches are too long elements of new technologies of these assets.” or frequent,” said Troughton. onto this, but the underlying “It’s the aggregator’s job to bias remains and you end up Misguided assemble a portfolio which constantly playing catch up.” Paul Troughton, senior director allows them to deliver reliable Oakes believes a better solution of regulatory affairs at Enernoc, response when the system needs would be “to define requirements suggested that while the original it, while minimising costs.” te based purely on the ability to proposal to derate standalone shift power levels against a “Any new CM rules battery storage had “merit”, defined baseline and then pay this latest idea is misguided. in proportion to power shift and must recognise “Scottish Power seems to be length of time you can shift it for, the different concerned that battery project regardless of technology type”. characteristics and developers might switch to He said the problem, however, capabilities of these building batteries behind- is that defining a baseline for the-meter so as to avoid the DSR would be complex, as it assets harsh derating applied to would require some forecasting Sebastian Blake, Open Energi standalone batteries,” he said. of what demand would have been “There was merit in tackling had there not been an event. for this flexibility,” he said. standalone batteries because of “But let’s address this “But the focus on derating the potential for huge numbers problem head on, rather than factors is causing us to of them to be built and financed Turn-down DSR is try to fudge it via derating lose sight of this value.” by 15-year Capacity Market very different to factors,” said Oakes. Sebastian Blake, commercial contracts. But there’s no potential battery storage. “Once we’ve done this, behind- manager at Open Energi, said for a sudden influx of behind- the-meter DSR will compete any broader derating decision the-meter batteries, because There is no hard very favourably, especially large must be made with a proper a one-year Capacity Market cut-off time for an numbers of small assets, as understanding of distributed contract is no help whatsoever aggregated DSR they can be configured to trade demand-side response. in financing them. So this is resource to stop off power shift versus length “Applying the correct derating neither a major nor urgent issue.” of response very flexibly. factor is important, but one Troughton said the proposal responding “DSR should be rewarded of the strengths of DSR is it also “ignores the fact that Paul Troughton, Enernoc theenergyst.com April/May 2018 49 Storage Storage costs pulled down

Suited to grid balancing and rapid frequency response services, a report by analysts at Imperial College London shows that a Gravitricity’s gravity-fed energy storage system’s levelised cost of storage (LCOS) is lower than all alternatives, including Lithium-ion

report by Gravitricity uses independent analysts a massive weight Gravitricity at Imperial College suspended in London predicts key findings A mine shafts to that Gravitricity’s gravity-fed capture power energy storage system may • Low specific power cost and then release offer a better long-term cost of and high cyclability it in seconds represent the key energy storage than batteries or advantage of Gravitricity other alternatives – particularly • Suited to frequency in grid balancing and rapid response market and frequency response services. any application with Gravitricity uses a massive multiple daily cycles weight suspended in mine • The higher initial opex shafts to capture power and is offset by very long then release it in seconds. lifespan (up to 50 years), In February, Gravitricity high power availability, received a £650,000 grant 100% depth of discharge from Innovate UK, the UK and 0% degradation government’s innovation agency, to build its prototype. Since then the Edinburgh 400 Frequency response: in predicting battery storage • Duration: 0.25 hours start-up has signed a R&D 350 • Cycles: 700 per year cost reductions. He has agreement with Dutch lifting $312 • P-elec: 50 $/MWh published recently in Nature 300 • Discount rate: 7% multinational Huisman to Charging Energy and is currently on develop a 250kW concept 250 Replacement secondment to the International O&M demonstrator and test it 200 $187 Energy Agency in Paris. Investment in the Netherlands and $154 He says:“The study has 150 $141 Scotland early next year. been rigorous in comparing all The report, which is available 100 technologies on a level playing Cost of storeage (US$/KW year) (US$/KW Cost of storeage on request, suggests Gravitricity 50 field. We have investigated technology will be well suited a number of sensitivities, 0 to provide grid balancing Flywheel Ad. Lead-acid Lith-ion Gravitricity including discount rate, project and rapid frequency response duration and expected cost services to grid operators – Figure 1: Levelised cost of storage in a frequency response scenario reductions using industry- where the requirement for specific learning rates. multiple short cycles and duration of 15 minutes at provider of frequency response “Gravitricty has high upfront high power availability play a power output of 4MW – services around the world and capex but a 50-year design life. to Gravitricity’s strengths. Gravitricity has a predicted we expect early Gravitricity It is therefore sensitive to the The detailed study factors LCOS of US$141/kWyear, projects to take an increasing discount rate and the modelled in all relevant cost and outperforming all alternatives. proportion of this market. lifespan of 25 years. If we model performance factors including Commenting on the report, “The report also validates a shorter response duration, a capex, operating costs, discount Gravitricity managing director our belief that in the medium lower discount rate or a longer rate, depth of discharge and Charlie Blair says: “This report term, energy storage projects project life, then Gravitricity degradation over a 25-year clearly shows that Gravitricity will need to stack multiple looks more competitive. I don’t lifespan to arrive at an can be a very strong competitor revenues to be cost effective. expect Gravitricity to displace annualised power levelised in the frequency response Mechanical systems such as all lithium batteries on grids, cost of energy storage (LCOS), market, where its low specific ours are very good at this, as but it certainly looks like a quoted in US$/kWyear. power cost and high cyclability we can cycle several times per compelling proposition.” te In a frequency response sets it apart from other day with no degradation.” scenario – requiring 700 technologies. Lithium batteries The report was authored For a copy of the report please cycles per year and a are just beginning to be a major by Oliver Schmidt, a specialist email [email protected]

50 April/May 2018 theenergyst.com Advertorial

Esos Phase 2 – are you ready?

The Energy Savings Opportunity Does my organisation Scheme (Esos) is a mandatory qualify for Esos? energy assessment and energy Esos applies to UK organisations and saving identification scheme. Esos their corporate groups that are large is in four-yearly phases and requires enough to meet the qualification the organisation to measure criteria. The qualification thresholds its total energy consumption, are any UK company that either: including within buildings and • Employs 250 or more people, or transport usage, conduct energy • Has an annual turnover in excess audits to identify cost-effective of ¤50m (£39m) and an annual energy saving recommendations, balance sheet total in excess of and report compliance to ¤43m (£33.5m). the Environment Agency. • An overseas company with a UK Non-compliances, such as registered establishment which failure to submit the compliance has 250 or more UK employees assessments on time, can incur a (paying income tax in the UK). variety of penalties from the EA for the non-compliant company. These How can Inspired Energy help? can range from publication of non- Inspired Energy provide compliance on the EA’s website, to a compliance service that a £50,000 fixed penalty plus £500 encompasses all required aspects of per day. the Esos Assessment. These include: • Provision of a qualified Esos Phase 2 Lead Assessor to complete, Esos Phase 2 offers a number of oversee or review any Energy method for each area of significant benefits including a fresh look Audits, to ensure they meet the consumption. at site energy demands and the requirements of Esos, and to sign • Site visits as required to conduct continuation of an energy reduction off on the overall Esos compliance Esos Compliant Energy Audits. strategy. submission. • Provision of full site energy reports The reference period for the Phase • Collation of annual energy detailing all energy efficiency 2 window began January consumption, ensuring improvements available, and 2018, so it is time to that this overlaps act now. with the where they would be applicable to Compliance qualification a larger portfolio, if required. with the date as • Full energy consumption second phase required by profiling, made available in a of the scheme Esos. variety of formats and reports must be • The from Inspired’s advanced energy completed and identification reporting system. reported to the EA of the ‘areas of • Creation and maintenance of a by 5 December 2019. significant energy comprehensive Evidence Pack Inspired Energy is now consumption’, ensuring that to store all relevant documents actively managing Esos these cover the minimum of 90% and information relevant to Phase 2 auditing, reporting and of total energy consumption. the organisation’s compliance implementation. • Advice on the best compliance activities.

To find out more contact our Esos team directly: [email protected] or visit our website: inspiredenergy.co.uk DATA Don’t get lost in translatation

Amid much talk of businesses requiring data scientists, Lisa Gingell, founder of 3 Eight Communications, says data translators are key to the growth of the digitised energy market

e are entering a data economy, Data scientists Data translators where the Wworld’s Gartner de ines a data scientist as ‘a person A person who helps ensure that organisations most valuable resource is who creates or generates models that leverage achieve real impact from their analytics initiatives no longer oil but data. predictive or prescriptive analytics’ The energy industry, in particular, is decentralising Clarify and produce crucial reports and data with Can then identify patterns, trends and and digitising rapidly, which management teams can make strategic opportunities, and problems. They can identify the throwing up vast data sets, and operational decisions value of AI and analytics in the business context or ‘big data’ and becoming increasingly connected. Is in charge of inding, assessing and/or Is the bridge between the business and the data As such, there is much generating the ‘right’ data, working closely with science team. Has strong business background, talk of businesses needing IT to in luence data strategy and optimising the a passion for building a data-driven business to hire ‘data scientists’ to quality and quantity of the data collected and a high level understanding of what data help companies extract the science could be used for. They are a leader, signal from the noise and communicator, project manager, industry expert create new, more compelling customer services. Are thinkers who put value on the process and Are in luencers of the story and leverage But, arguably, there is just are not overly concerned with the aspect of the visualisation techniques that present data in an as much need for those that outcome and the presentation actionable manner to business users can act as the bridge between business and science to work to develop. They ensure buildings and systems. effi ciencies across production, create new business models that the solution produces Within the energy industry, distribution and pricing, and solve both internal insights the business/ suppliers, brokers and solutions for forecasting and external challenges. customer can interpret and energy management systems and demand response This is where the data execute on, and, ultimately, providers have an opportunity activities, visualisation for translator comes in. communicate the benefi ts to collect a vast array of data digital interfaces that use, for of these insights to business – from consumption patterns example, cluster algorithms The data translator users to drive adoption. and time of use, to building to highlight opportunities The data translator bridges and equipment operational or ineffi ciencies and they the technical expertise of data Energy industry context hours and maintenance and infl uence the story for the scientists with the operational Switching utility providers has fault statistics, as well as smart-home/building/factory. expertise of marketing, supply become easier and consumer from human behaviours and chain, manufacturing, risk understanding of energy actions and their interaction Better service and other frontline managers. consumption and its growing with buildings and systems. The translator ensures for a They draw on their knowledge cost is creating a desire to The energy industry has an better customer experience of their business or their change how they operate opportunity to collect, store, that uses digital interfaces customer’s business needs, computationally analyse the to drive engagement for example, to help identify data (data scientists) but and longevity of use. the problems and then use for a true digital customer Put simply, data translators their working knowledge of AI experience, it requires the help make better products and analytics to convey these addition of a data translator and services for customers business goals to the data who understands the industry, based on actual data and scientists who in turn create The energy industry the business and customer insight, in turn driving the algorithms and solutions. needs; someone that can revenue for their business. te The data translator has a data science articulate how data can be facilitates the ability to opportunity. But a interpreted into tangible, As co-founder of t-mac articulate the customer and true digital customer workable solutions. technologies, which was sold business needs that, in turn, The translator infl uences to Utilitywise in 2015, Lisa create the digitised services experience requires the services and solutions Gingell has a background in and solutions the business will a data translator that create operational energy data and technology

52 April/May 2018 theenergyst.com Energy management Data scientists and specialist support: the future of energy Inenco chief technology officer Jon Bauer discusses how the future roles of the energy manager will change in the fast-changing world of business energy

ew roles can have provides insight and access transformed more Data scientists to energy solutions and helps than the business have the potential to identify, choose and deliver energy manager, to drive and effect energy management solutions. F real change in evolving constantly to adapt In the same way that to an ever-changing horizon. businesses of the businesses must support Speaking on a panel at The future their energy managers to Energyst Event, we were transition towards these asked whether data scientists new requirements through would become the future of training, internal systems energy management. The investment and enabling answer was a resounding yes greater collaboration between – and it will happen soon. departments, consultants The three Cs of cost, enable more in-depth energy Such a broad remit will must also invest and adapt consumption and compliance monitoring. In readiness for undoubtedly mean the data to be ready to help create have long shaped the role of a data-driven future, 14% of scientist will take a more sustainable, future-proof the energy manager but the today’s energy managers are strategic role, making larger energy strategies. role is already changing: the already investing in better data investment decisions and While industry expertise increasing compliance burden systems and analysis functions. providing input to all business and impartiality will always has resulted in a shift in The research report departments as the breadth of be required and expected, responsibilities. Energy buying predicted technological subject matter that he or she consultants must invest is increasingly handled by processes and energy becoming must be familiar with expands. heavily in technology to finance and procurement with a board-level concern for They are likely to be create the best-in-class input from the energy manager, all businesses; the energy supported by a team of digitally platforms, data analytics and replaced by a focus on manager will have evolved into able professionals coming interfaces that will secure a managing energy behaviours, a senior-level data scientist by from both inside and outside competitive advantage for applied data analysis, ensuring 2030. That makes sense: the of the business, outsourcing businesses – something we compliance and keeping an ‘data scientist’ element of the activity to specialists wherever have committed to doing in our eye on emerging technologies role will mean a broadening necessary. As a result, their recent business reorganisation, and investments, from EVs remit to understand and dependency on external parties ready to help shape the to artificial intelligence. manage data on energy, to provide data insight and future of business energy. water, waste and transport specialist support will increase. Businesses have always Role of data activities, particularly once required consultancies to be The growing role of data and electrical vehicle take-up Strategic decisions knowledgeable, proactive technology is well documented surges as predicted. Consultants must be prepared partners. As the role of the in business energy: a fifth to advise on strategic decisions energy manager adapts and of respondents taking part as well as assisting with the evolves once again, consultants in Inenco’s Future Utilities sourcing and structuring must also evolve and change Manager research commented of new technology so that to be best placed to predict on a substantial increase businesses can optimise their and meet the challenges and during the past five years, Consultants must plant operations, energy demands in our customers’ with data already driving supply, storage and EV use. changing worlds. decision making and reporting. invest heavily in By its very nature, the role Data scientists have the Respondents unanimously technology to of the energy consultant potential to drive and effect agreed that the trend of create the best-in- has changed too – from a real change in businesses data-driven decision making transactional TPI simply of the future – our role will is set to continue as a much class platforms, providing procurement be to provide them with higher level of automation and data analytics and support of the past to a the tools, platforms and access to real-time data will interfaces collaborative partner that support to achieve this. te theenergyst.com April/May 2018 53 VIEWPOINT

Energy manager or soothsayer? The modern energy manager has to have a wide range of highly developed skills and tools to hand to perform in an ever complex environment. As UKAEE member committee Andy Clarke discusses, perhaps one of those skills needed is reading a crystal ball

nergy managers need to be We are often asked to predict energy numerate both to handle the cost sometimes just for a fi nancial year (or fi nancial elements and the vast the remainder of one) but sometimes we Eamount of consumption data they need to predict further ahead. One example can now have available from advanced of this is whole life costing (see Figure 1) metering: they need to be a salesman to where we are expected to determine charges So, do energy managers persuade others to take steps to improve for the entire lifetime of the equipment. need a crystal ball or maybe performance, they often need to be a people To predict that we need to understand a manager, they need presentation skills, they lot of things that are defi nitely not under a coin to toss? Either might need to be literate – the list goes on and on. our control such as infl ation, legislation, have a better outcome than Well we can add another diffi cult skill; world markets and labour rates. The expert opinion they need to be able to foretell the future. problem is that many ‘experts’ are paid a Now some elements of that requirement great deal to make those predictions by big can be handled relatively easily. Verifi cation business and governments and they have turn of the century the UK experienced of the likely future performance of energy a reputation for often getting it wrong. a massive apparent decrease in gas and conservation measures can be measured The simple rule of thumb was always electricity prices (we will ignore questions with more confi dence by using skills such to assume that energy unit costs, standing of deferred investment) but new taxes as those developed in the AEE Certifi ed charges etc, would increase signifi cantly like CCL, ROC’s (and administrative Measurement and Verifi cation Professional across time and that capital costs would challenges like CRC Energy Effi ciency (CMVP) course/qualifi cation. Ongoing decrease in real terms because of improving Scheme and Esos) have managed to energy consumption performance can be technology. Taxation could also be expected increase the complexity and confusion. tracked using more advanced monitoring to become more expensive and complicated. And some more fundamental changes and targeting approaches accounting The trouble is that experience tells have occurred which we could not expect. for weather conditions or production us that does not work all of the time Intelligent energy managers have for many rates but other aspects are less easy. – from the early 1990s through to the years advised the use of mains (natural)

54 April/May 2018 theenergyst.com gas as the ‘least worst option’ because A few years ago some of us became of its competitive (low) pricing, effective excited by the first generation of micro- utilisation and the lowest carbon footprint wind turbines – at around 2kW at of any fossil fuel. The last option included most they were designed to be fitted mains electricity because the majority to new and existing buildings and of generation was by the combustion of provide a supplement to their electricity fossil fuels (including natural gas) and supply. Comparatively cheap – what it was thereby one of the fuels with the could go wrong? Well they didn’t work largest carbon emissions per kWh. as effectively because no one fully So many of us specified – and even understood the impacts of turbulence wrote into policy documents – that around buildings in an urban setting. electricity was not to be used for space At the moment one of the exciting heating and technologies being thereby reduced Whole life considered is carbon emissions cost electricity storage significantly. The but we’ve already Financial Central trouble is very costs overheads heard stories of soon we will be poor installations wrong. Because of Financial without an economic overheads the unprecedented outcome (and many

(and surprising for Start-up / more which seem to many) growth of capital Operation End of life work well). So should renewable energy we be installing generation in the Design Energy Resale this technology – UK electricity mix, it or another one? is fast approaching So, do energy Equipment Maintenance Removal a rate of carbon managers need a dioxide emissions crystal ball or maybe Commiss- Recycling per kWh BELOW ioning Overheads a coin to toss? that of natural gas – Either might Captial and Facilities Safe have a better and it will get even interest cost management disposal better as coal and outcome than expert other fossil fuels opinion (especially Interest are phased out to if you could hire decarbonise the Nostradamus’s network. There are Figure 1: Whole life cycle costing flow press agent) but issues about peak chart – typically the costs of the start up/ responsibly we can load still requiring capital column are a fraction of those in only listen to the high carbon the operation column, often around 3% opinions of ‘experts’ dioxide emitting where we can find plant being employed but that will them and extrapolate what ‘facts’ we be for a limited period each year. can identify using the best estimation Now we were right to act as we did of apparent trends. But then of course and will have saved a massive amount the UK voted for Brexit and Donald of carbon dioxide from entering the Trump was elected US President – atmosphere and adding to climate change events which were not predicted by the but much of that plant will continue to experts. Both those events also add to emit more carbon than an alternative the difficulty of predicting the future. for years to come. The question is: Good luck and expect to be “Could we have foreseen the change?” proved wrong sometimes. te

The UKAEE is the UK chapter of the global energy management organisation, the Association of Energy Engineers (AEE), with its HQ in the US. It covers a range of expertise in the energy management and energy efficiency sectors. It delivers a range of technically focussed seminars and offers excellent networking opportunities for energy and sustainability professionals. UKAEE offers Continued Professional Development opportunities for AEE certifications such as Certified Energy Manager, Certified Measurement and Verification Professional and Certified Energy Auditor. Membership is currently free. For more information on UKAEE or how to join, please visit ukaee.org.uk

theenergyst.com products

Gazprom Energy launches Eco Gas product in UK Gazprom Energy has launched its Eco Gas product, designed to help medium- to large-sized businesses meet growing environmental targets and fulfil CSR goals. Days after the launch, Gazprom signed its first major Eco Gas customer – a multibillion-euro global cosmetics company Solar power farm training support. The solar farm prestigious institution. – valued at more than installed at Cranfield will not only provide a new “Solar integrates well into £200,000 over two years. University facility which can be used by the existing infrastructure to It is estimated that students but also a sustainable, provide a clean, cost-effective global companies in the Work has started on the reliable and affordable energy long-term power solution, as Fortune Global 500 spend installation of a new supply to the campus.” is the case at Cranfield, where collectively about £13.2bn field of solar panels at Installed by RenEnergy, the our solar array will interact on CSR activities. Gazprom Cranfield University in PV panels will be sited on the with the combined heat and says its Eco Gas product Bedford in support of its eastern side of the airport, power (CHP) plant onsite provides an additional way carbon-saving target. covering a 2ha field (about to provide energy without for organisations to reduce Funded by the university, 4 acres). A total of 3508 solar exporting to the grid.” their carbon footprint, while the PV panels will generate panels will be fitted covering Gareth Ellis, energy and still accessing the essential 5% of the annual electricity at a 5,858sq m generator surface environment manager at energy supply they need in the campus and also provide a area. They should produce Cranfield, said: “Cranfield order to operate effectively. new renewable energy research 1GWh per year of power, already has a CHP on The company will sell Eco facility to be used by students which is about the equivalent site producing 60% of its Gas to any UK firm with attending energy courses. of the energy consumed by electricity. We have made a gas usage of more than Feargal Brennan, Cranfield’s 300 houses each year. significant reductions in 732,000kWh per annum, director of energy and power, RenEnergy managing carbon emissions in recent on both fixed and flexible said: “Cranfield has a reputation director Damian Baker said: years and are well on our purchasing contracts. for providing students with the “We are delighted to have way to achieving our target The product is available opportunity to use industrial- been appointed as the solar of a 50% reduction by 2020 via TPIs and direct. scale facilities for education and PV contractor for such a against our 2005 figures.”

Raise a glass to compressed air short-term payback on capital costs. and nitrogen for craft beer Atlas Copco installed a system comprising a tank-mounted 5.5 kW GX5 rotary screw A newly installed compressed air and onsite compressor with integral refrigerant dryer, nitrogen generation system from Atlas Copco which delivers 10 bar air at a rate of is providing a key driver in the independent 10 l/s (36 m3/h), together with a two stage craft brewery Outstanding Brewing UD+ coalescing filter, PDp+ particulate Company’s ongoing commitment to enhance filter and activated carbon QDT filter its product quality, productivity and growth. for hydrocarbon and odour removal. In keeping with the brewery industry at The energy-efficient compressor’s dry large, the Outstanding Brewing Company air output feeds a plug-and-play NGP8+ has to rely on a continuous supply of nitrogen generator and buffer tank, then compressed air and nitrogen as a critical a separate storage receiver for nitrogen at element at every stage of the production the required purity. The NGP+ generator’s process: right from purging kegs and tanks, is based on pressure swing absorption oxygenating beer to promote fermentation, technology. Carbon molecular sieves isolate right through to filling, bottling, labelling targets. As a result, it turned to Atlas Copco nitrogen molecules from the compressed air and packaging the final product. to install units that would not only meet its while oxygen, CO2, water vapour and other It became evident to the company that its process needs but also provide opportunities gases are adsorbed. The result is a guaranteed existing rented equipment would be unable to realise operational cost savings, in terms and continuous supply of nitrogen at the to cope reliably with required new volume of energy requirement and a comparatively highest purity levels of up to 99.999%.

56 April/May 2018 theenergyst.com

Q&A James Summerbell

Ecova’s new director on bad drivers, discovering ‘the truth’ about Jack the Ripper and being one with the Force

Who would you least like What would you take to a to share a lift with? desert island and why? I Someone like Katie Hopkins. love to cook, so I’d have to I can’t stand people who take my set of special knives go straight for the most – essential tools for any chef. controversial, incendiary approach, seemingly for What’s your favourite film the sole purpose of drawing and why? It has got to be Star attention to themselves. Wars. It was the first film I ever saw at the cinema and If you could travel back in I’ve loved it ever since. Why? time to a period in history, It’s Star Wars, of course! what would it be and why? Not that far – What would your I’d go back to super power be the 1960s. It and why? Staying I’d go back to the 1960s… was a period of on the Star Wars everyone I know who was immense cultural theme – definitely around then tells me it was a change which the ability to truly fantastic time still permeates use ‘The Force’ today. On top of – especially the that, everyone I ability to move What’s your greatest and the number of people who know who was objects around extravagance? I spend far too don’t indicate, hog the middle around then tells without touching much money on Lego – I’ve lane or just drive with no me it was a truly them. That said, been a fanatic since I was consideration for anyone else fantastic time, and I’d probably knee-high. My latest purchase just drives me round the bend. I’m sure it was. only use it grab was the largest set they’ve the TV remote control from ever produced – I won’t tell What should energy users Who or what are you across the room, so it would you how much it cost. be doing to help itself in the enjoying listening to? Unlike probably be wasted on me. current climate? Take another many of my peers, I really like If you were blessed with look at innovations and modern music. My daughter If you could perpetuate a any talent, what would your opportunities which you might loves the playlists I have on myth about yourself, what dream job be and why? I have dismissed as ‘bleeding my car stereo – I pretend would it be? I used to swim imagine it would be great to edge’ only a couple of years they’re hers, but they are competitively when I was be a rock star – getting up on ago – there were formerly mine really. I don’t have it at young, so I think I’d probably stage and performing in front out-of-reach technologies full blast with the windows promote the myth that I was of thousands of people must which are now accessible and down these days, though. an Olympic swimmer. It be an incredible experience. affordable which could make wouldn’t be too convincing Sadly, with my singing voice, a real difference to energy What unsolved mystery to anyone seeing me thrash this was never an option. management in your business. would you like the answers? about in the pool now, though! I’d love to know who Jack What is the best piece of What’s the best thing – work the Ripper was. It is a story What would you do with a advice you’ve ever been wise – that you did recently? that keeps returning. Every million pounds? I’d set aside given? The hardest step is the I’ve only recently joined Ecova few years someone claims to enough to be comfortable first one – if you don’t start, but I am really enjoying the have indisputable evidence but I’d want to put most of it you will never get anywhere. process of positioning the of his identity but the case towards a really worthwhile business for the future – is never quite watertight. project to help people – taking What irritates you the most helping to take our clients’ It has been 130 years but it people off the streets and in life? Bad driving. I do quite aspirations for energy and is still a fascinating case. giving them a new chance. a few miles on the motorway carbon to the next level. te

58 April/May 2018 theenergyst.com