With budgets tight and overheads stretched, finding new ways to streamline efficiencies, while simultaneously achieving carbon emission reductions, is critical for public sector energy management. Tim Broadhurst, CCO at CooperOstlund, explains why on-site generation is the cost-cutting, carbon-reducing solution.
With a duty to consider the long-term impact of its investments, the public sector is a truly unique energy consumer. Nationwide, its annual energy bill reaches an approximate £3.4 billion per annum, with the NHS accounting for roughly 30% (£1.1 billion, Centrica, 2019). Meanwhile, the government’s Energy White Paper (December 2020) shows that public sector buildings account for 9% of the UK’s buildings’ emissions (which make up 19% of the UK’s total greenhouse gas emissions). The opportunities for cost cutting, carbon reduction and streamlining efficiencies are therefore substantial.
For public sector energy managers in need of a dependable energy supply and efficient overheads, finding a cost-effective solution that can also deliver substantial reductions in carbon usage is critical. As commercial energy prices continue to rise, blended energy programmes are therefore becoming an ever-more common choice.
What is combined heat and power (CHP)?
Effectively a gas power station, but more than twice as efficient, a CHP engine combusts natural gas to generate electricity and thermal energy. This can then be used for space heating and hot water. Gas prices are lower and more stable than mains electricity supply, allowing managers to achieve significant cost savings by self-generating power, within a payback period of generally less than five years.
Alongside the obvious financial efficiencies, CHP technology reduces carbon emissions by up to 30% compared to traditional supply and can also be used to meet Part L of the Building Regulations.
CHP can be deployed quickly, effectively and with few geographic limitations – perfect for many industrial, commercial and institutional situations. The most appropriate application is when there is a significant and continuous energy demand (such as manufacturing sites, office buildings, hotels, health clubs and hospitals).
Immediate results, impressive savings
With a continuous supply of cost-effective electricity and heat essential to the smooth running of daily operations, more and more public sector sites nationwide are looking towards on-site sustainable energy generation to guarantee complete peace of mind. One of the UK’s leading NHS Trusts, for example, has used an 800kWe MWM TCG2016V16 combined heat and power (CHP) engine to generate power for its site for several years. CooperOstlund took over the contract in April 2019 and has managed O&M for the engine ever since.
Alongside weekly maintenance provision and remote engine monitoring, the agreement also includes routine engine logs and checks. Over the past 12 months, the engine has been operating at close to 97% uptime (with only planned servicing downtime preventing this figure from being higher). CooperOstlund’s engineering team visit the site weekly and any areas of concern are quickly addressed.
However, with organisations unfamiliar with their options, and suppliers often inexperienced in advising the right solutions, blended energy is not always guaranteed as the silver bullet solution it should be. In fact, our research shows that hundreds of engines nationwide are performing well below their true capability.
CHP: Planning ahead
Moving from a centralised to a decentralised energy model may seem daunting. But success is highly achievable if you plan ahead. Using CHP as an alternative to more traditional grid connectivity can save you money on your utility bills, but maximising efficiency relies on equipment running at full capacity 24 hours a day. A feasibility study commissioned well in advance is an essential first action to help you specify the perfect solution for your energy requirements. These will match engine size, dimensions, location and generation outputs to site demands. The higher your energy consumption, the more you could save.
But CHP is much more than just a plug-and-play solution. Indeed, the following points need to be considered at the start of any blended energy programme, as well as throughout the lifespan of your CHP engine.
- Size – There is no ‘one size fits all’ solution when it comes to engine specification. It’s critical to take facility size and energy requirements into consideration. For example, an oversized engine will shut down during periods of low demand, but an undersized engine will restrict generation capacity. In both circumstances, incorrect sizing will limit the financial benefits of choosing CHP over grid connectivity. Getting the balance just right is a tricky but nevertheless critical task.
- Installation – Precision is fundamental when it comes to engine installation. Unlike more standard gas engines, CHP technology is very sensitive and must be fitted by an expert. We’ve visited sites where poor installations, with problems ranging from unlevel floors to inadequate housing, significantly impacts upon engine performance. Working in partnership with an installation expert is essential to long-term issue prevention.
- Calibration – Correct engine calibration is essential to ensuring best possible running efficiencies, much in the same way that a racing car must be professionally tuned to deliver optimum performance. In our experience, rushed calibration can considerably impact on outputs. Getting it right from the start is critical to ensuring long-term financial savings.
- Maintenance- Working at full capability, 24/7/365, will take its toll on the performance of any CHP engine. Poorly maintained machines can see efficiencies drop by as much as 20%. There are a number of simple daily checks you can make but it is also critical to work with an established CHP maintenance provider to action the servicing intervals your manufacturer has advised (these are typically 2,000, 10,000, 20,000, 40,000 and 60,000 running hours.
- Ensuring CHP efficiency – Once a CHP unit has been installed on site, it’s important to have a data management solution in place to enable data collection and view performance metrics – this is key to the success of any blended energy plan.
The right solution for your business?
As the public sector moves towards a low-carbon future, a rethinking of its energy requirements and usage is essential to meet wider, over-hanging initiatives, such as the Greener NHS strategy, for example, and its commitment to reducing the NHS carbon footprint to net-zero by 2045. CHP is a cost-effective, reliable and secure solution that can also yield substantial carbon usage reductions that will also stand up to the rigours of significant and continuous energy demand, within a payback period of less than five years.
At CooperOstlund, we understand that no two sites are the same, so we approach every situation in an entirely bespoke way – ensuring the utmost care and attention to deliver outstanding results.
For more information, visit www.cooperostlund.com.