How the industry can eradicate energy supply volatilityโ€ฏโ€ฏย 

Daniel Cross

By Daniel Cross, Sr. Director of Load Forecasting, POWWRโ€ฏโ€ฏย 

The move to a renewable future has begun in the public sector, with almost eight-in-ten (79%) business leaders saying they have either already entered into a renewable energy power purchase agreement, or plan to do so within the next two years. This is, of course, a good thing. However, it does present issues for the energy industry due to the additional risks involved in supplying renewable energy. This has made it difficult for suppliers to keep costs down and revenues up. Yet, it is imperative that they do. Cost continue to remain front of mind for three-quarters (74%) of business leaders when they are making decisions about their energy supplier. The well isnโ€™t infinite.  

As we know, energy costs are more volatile today than ever before. Much of this has been caused by the unpredictability of supply โ€“ whether due to geopolitical instability or climate patterns. However, the move to renewables and the inherent unpredictability of them has only exacerbated the issue. 

This supply volatility is something the industry has had to take seriously. After all, the main goal of an energy supplier is to supply energy to its customers. Margins have been squeezed by the unpredictability in real-time prices, improper pricing, and incorrectly accounting. Yet, they can also be squeezed by the retail energy provider (REP) overpaying for the energy in the first place. 

A more variable climate

What a REP pays for energy can massively vary, and much more so than ever before. Energy demand has always been linked to weather patterns. After all, air conditioning units are needed more when it is hot, and gas heaters are needed more when it is cold. However, as we move towards an era when renewable energy makes up a higher proportion of the energy mix, climactic variables also impact the ability to produce that energy in the first place. 

Solar and wind power generation can be particularly volatile. Solar farms only work optimally when the sun is out. Wind farms are unreliable in a light breeze and can even freeze in the winter.  

Of course, a REP is fiscally required to pay for the energy that their customers are using. Because of this, it is imperative that they price their contracts correctly to cover all eventualities, while remaining competitive. This is easier said than done. Prices of wholesale energy change rapidly and are difficult to predict. Plus, they are more volatile than ever before. We used to see an extreme pricing event only every few years, now we see them almost seasonally.  

The importance of accurate forecasts

Energy cost and supply volatility presents serious financial and operational challenges for REPs. Because of this, they are looking to proactively control energy sourcing and consumption through a diverse set of strategies. If a REP is incorrectly hedged or priced for any length of time during a price event, the ramifications could be catastrophic.โ€ฏThey need to flatten the curve. 

Luckily, help is at hand. Buoyed by recent advances in artificial intelligence (AI) and machine learning, technology can be used to accurately forecast load (how much energy its customers will require) and load generation (how much energy will be produced) better than ever before.  

The data itself can come from a mixture of historic and live data points within the supply chain, buoyed by the proliferation of the Internet of Things (IoT) sensors. Once AI and machine learning is used to unlock this data, REPs have the insight they need to know what energy they need to push onto the grid, and when. This enables them to hedge more effectively and mitigate the risk of falling foul of a future extreme price event. 

Donโ€™t get left behind

The energy industry is at a critical point. With over one-third of the worldโ€™s largest public companies making net-zero commitments and much of the private sector following suit, new products and services are required. It is important that they donโ€™t get left behind. Almost three-in-five businesses (59%) say they have either already engaged in the process of securing flexible green energy tariffs or plan to do so within the next two years.

REPs need to provide the market with what they want. To do so effectively, though, they need to flatten their risk curve by better utilising AI and other technology to obtain accurate forecasts and pricing. Only then can they offer reliable, renewable energy that keeps the lights on whatever the circumstances.โ€ฏโ€ฏโ€ฏ

This article appeared in theย May 2024ย issueย of Energy Manager magazine. Subscribeย here.

With major targets scrapped, whatโ€™s next for net zero โ€“ and what does it really mean in 2024?

Don McLean

Don McLean is CEO at IES, a global climate tech company.

Almost every day, stories of extreme weather events and rising global temperatures populate our news feeds. Our environmental crisis is more visible than ever, with climate change widely viewed as a growing threat and jurisdictions in 40 countries having declared a climate emergency.

Evidence of the impact that CO2 levels are having on our planet is mounting, and people and industry are taking note. People are demanding change; we even saw a group of women win the first climate case victory recently, with the court ruling that Switzerlandโ€™s efforts to meet climate targets were inadequate. So itโ€™s both disappointing and concerning to see Scotlandโ€™s ambition to reduce carbon emissions by 75% by 2030 recently declared beyond reach โ€“ and now officially scrapped. However, were these targets ever realistic?

Weโ€™re at a critical stage for climate change, and this announcement โ€“ coupled with the news that Ministers have missed so many annual targets โ€“ sends the wrong signal to the people and businesses that will be integral to bringing about change. But we must continue to look ahead; backtracking on targets doesnโ€™t take away the time sensitivity of the issue. Our planet is walking a plank thatโ€™s getting increasingly shorter every day.

Putting decarbonisation into practice โ€“ regardless of policy

Scotland remains steadfast in its net zero 2045 target, and encouraging industry to accelerate their efforts will be essential to meeting this ambition. The issue is beyond politics, and everyone has a role to play in decarbonisation – but not everyone knows the art of the possible.

Weโ€™ve seen an encouraging trend in organisations acknowledging that while the government isn’t going to ‘do’ it for them, they can act with autonomy. Carbon-intensive industries are where we can make the biggest difference โ€“ and the built environment is a major player in this regard. Given that a significant 39% of global energy-related carbon emissions derive from the built environment, reducing energy consumption and tackling the harmful outputs of the places in which we live and work can go some way to addressing the global issue at hand.

In the UK, many of us are fortunate to be able to access the energy we need. The challenge will be maintaining this standard of living as fossil fuels deplete. We need to make smart energy swaps now to benefit people and the planet in the long term.

The key thing is to make the โ€˜howโ€™ as simple as possible โ€“ from cutting costs to making decisions much simpler. But with โ€˜net zeroโ€™ now a heavily politicised term, and conversations โ€“ and misinformation โ€“ around everything from heat pumps to solar panels rife, building owners may not know where to begin.

This is where data should come into the decision-making process, enabling building owners to shape good intentions into decarbonisation strategies and avoid a costly โ€˜stab in the darkโ€™ when it comes to cutting energy consumption and emissions.

Creating digital twins of buildings means we can model operational scenarios and select the best way to move forward. Compliance energy models that have been archived can be re-awakened, taken through further modelling, and transformed into Performance Digital Twins for in-use building evaluation. This enables building owners to analyse where the most energy is being used and how, informing decisions around how to reduce it.

The ambition is that as technology advances, we scale this approach from individual buildings to campuses, cities, counties, and beyond. Weโ€™ve already proven that itโ€™s possible at a district level at Warrington Borough.

But is โ€˜net zeroโ€™ really achievable โ€“ and do people actually know what it means?

By using data to create an action plan, organisations can strive towards meeting their environmental targets, as well as supporting wider ambitions at a societal level. But itโ€™s worth noting that while setting a โ€˜hardโ€™ target for net zero is helpful, it is still not ideal. The race to net zero instils urgency, but it doesnโ€™t tell the whole story. In reality, we can create and operate buildings that are net zero โ€“ which would be a huge step forward โ€“ but they will still be putting carbon into the atmosphere and offsetting it elsewhere. We should strive to get to a position where we are actually taking carbon out of the atmosphere, instead targeting โ€˜negative carbon emissionsโ€™.

For now, we should empower organisations with the tools to do what they can. There are no โ€˜perfectโ€™ solutions, but some are better than others, and acting on evidence is the best we can do to make the biggest difference.

This article appeared in theย May 2024ย issueย of Energy Manager magazine. Subscribeย here.

Heat pumps – is the industry standard up to standard?

Leading Scottish University accommodation block switches heat pump to Rinnai Hybrid system

Ask a question and learn more about RINNAI Hybrids today www.rinnai-uk.co.uk/contact-us/ask-us-question

One of the oldest and most revered of Scottish universities has up graded its hot water supply in a large accommodation block to incorporate a Rinnai Hybrid system which instantly rectified problems with an existing heat pump configuration.

The project originally began in September 2022 to provide all the hot water needs of the 102-bedroom accommodation block via a two unit heat pump system with a total output of 60kW. The specification was changed, as these things mysteriously do happen sometimes, and it was reduced to just ONE 30 kW heat pump. The result proved totally inadequate for the demands of hot water for the bedrooms, common areas and communal kitchen.

Rinnai was approached to rectify the issue – and redesigned the system. The optimal solution was decided upon after considering the practical, economical and practical factors of the site. Therefore, a Hybrid heat pump and gas-fired system consisting of two I2HY20 Hydrogen blend ready continuous flow water heaters – in turnkey package format โ€“ and including a cylinder and expansion vessel. The new system was installed in January 2023 and, since then, there have been no problems with the supply of continuous temperature controlled hot water demand 24/7.

Rinnai offer design support that considers the nuances of all sites and produce a solution that considers capital expenditure, operational expenditure, and carbon modelling.

Comments Pete Seddon, Technical Manager for Rinnai, โ€œThe original schematics seemed to have no real provision to maintain the water temperature within the system and this only came to light AFTER the original installation. It relied on storage temp and recovery. Plus, the added atmospheric conditions on site โ€“ the heat pump performance reduced working at an outside temp of just -5 degrees and, of course, Scotland does have some harsh weather in winter.โ€

The Rinnai Sensei N 1600i โ€“ gas-fired continuous flow water heater – is the first ever continuous flow hot water heating unit manufactured with stainless steel heat exchangers which offers a greatly extended working life at optimum performance. Added to this are the market leading extended warranties, that accompany these hydrogen blend-ready appliances. The Rinnai N1600i offers a more compact, enhanced combustion design that allows for easier installation, superior operational performance as well as ease of serviceability.

On site at this Scottish university the two N1600s are capable of delivering almost 2000 litres of temperature accurate continuous flow hot water suitable for commercial applications, the N1600i giving 954 litres per hour.

All the range is also low-NOx, and the futureproofed continuous flow water heater utilises Rinnaiโ€™s patented advanced burner technology with a 13-1 turn down ratio โ€“ the largest on the market โ€“ with extremely quiet operation. Integral controls on the units enable the water heater to achieve high efficiencies because of advanced burner control and high modulation ranges. This wide range of modulation means that energy usage is completely optimised as the water heater through smart inbuilt controls will only heat the water to the temperature required thus preserving energy.

Rinnai also offer a complete Technical Support Service to include a FREE design service that incorporates the ideal heating and hot water system suited specifically to the customerโ€™s property requirements and demands. A hot water and heating system designed to the specific needs of any site or application ensures that savings can be made in purchase and running costs, as well reducing carbon emissions. 

Visit https://www.rinnai-uk.co.uk/training/appliance-training-enrollment and select your course today!

Rinnaiโ€™s  range of products include domestic and commercial heat pumps that offer immediate property decarbonisation. Rinnai is determined to provide UK customers with cost effective low carbon solutions towards residential & commercial hot water and heating provision.

RINNAI OFFERS CLEAR PATHWAYS TO LOWER CARBON  AND DECARBONISATION PLUS CUSTOMER COST REDUCTIONS FOR COMMERCIAL, DOMESTIC AND OFF-GRID HEATING & HOT WATER DELIVERY  

www.rinnai-uk.co.uk/about us/H3

  • Rinnaiโ€™s range of decarbonising products – H1/H2/H3 – consists of hot water heating units in gas/BioLPG/DME, hydrogen ready units, electric instantaneous hot water heaters, electric storage cylinders and buffer vessels, a comprehensive range of heat pumps, solar, hydrogen-ready or natural gasย  in any configuration of hybrid formats for either residential or commercial applications. Rinnaiโ€™s H1/2/3 range of products and systems offer contractors, consultants and end users a range of efficient, robust and affordable low carbon/decarbonising appliances which create practical, economic and technically feasible solutions..ย 
  • Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year, operating on each of the five continents. The brand has gained an established reputation for producing products that offer high performance, cost efficiency and extended working lives.ย 
  • Rinnai products are UKCA certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours.
  • Rinnai offer carbon and cost comparison services that will calculate financial and carbon savings made when investing in a Rinnai system. Rinnai also provide a system design service that will suggest an appropriate system for the property in question.
  • Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry including detailed CPDโ€™s.
  • The Rinnai range covers all forms of fuels and appliances currently available – electric, gas, hydrogen, BioLPG, DME solar thermal, low GWP heat pumps and electric water heaters More information can be found on Rinnaiโ€™s website and its โ€œHelp Me Chooseโ€ webpage.ย 

RINNAI FULL PRODUCT AVAILABILITY 24/7 FOR NEXT DAY DELIVERY of ALL HOT WATER HEATING UNIT MODELS INCLUDING 48-58kW UNITS-

SAVINGS OF

  • 20%ย REDUCTION of opex cost,
  • 30%ย REDUCTION of initial cost
  • 15%ย REDUCTION in carbon
  • 75% REDUCTION of space
  • 85 %ย LESS in weight

Visit www.rinnai-uk.co.ukย ย Or email engineer@rinaiuk.comย ย 

For more information on the RINNAI product range visit www.rinnaiuk.com

British Gas launches UK’s lowest heat pump rate to drive take-up

The new heat pump rate aims to encourage the installation of heat pumps throughout the UK by making the low carbon technology more affordable.

Households could save up to ยฃ450[i] by switching to a heat pump, making use of the new rate and capping their gas meter.

British Gas has launched the UKโ€™s lowest heat pump rate[ii], to make low carbon technology more affordable and encourage heat pump uptake.

The new energy offering is available to all British Gas energy customers that purchase any air source heat pump from British Gas and aims to help drive the adoption of heat pumps in the country.

British Gas is providing a unit rate of just 14p/kWh for the electricity used to run the heat pump for the first year. Households could save up to ยฃ450 for one year by switching to a heat pump, making use of the new rate and capping their gas meter, compared to heating a home with a D-rated gas boiler. The savings from the new rate will automatically be credited to customersโ€™ energy bills each month.

The move tackles the ongoing running costs of heat pumps making them a more affordable option for home heating and cutting carbon emissions. British Gas also offers a range of payment options including two years interest free credit.[iii].

It follows British Gasโ€™ latest research[iv] which showed that 60% of UK homeowners say they are considering installing a heat pump.

According to the research, reducing energy bills is homeownersโ€™ biggest priority when it comes to their home heating. Cheaper heat pump tariffs will help to convince nearly four in 10 (37%) homeowners to adopt a heat pump in the future. 

Gail Parker, Low Carbon Homes Director at British Gas, said: โ€œThere is a clear desire amongst UK homeowners to cut their energy bills and act more sustainably, but we need to make low carbon products more affordable.

โ€œWe are launching the UKโ€™s lowest heat pump rate to lower running costs as we know this is the single most important factor in householdsโ€™ choice of home heating system. Our new leading heat pump offer aims to provide a bigger financial incentive to make the switch to electric โ€“ helping to decarbonise home heating and making headway towards the Governmentโ€™s heat pump target.โ€

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: โ€œOur Boiler Upgrade Scheme is one of the most generous of its kind in Europe and is helping households make the switch to cleaner, more energy efficient heating. 

โ€œDemand for heat pumps is on the rise with the latest figures showing applications are up 46% compared with the same month last year. This competitive new tariff from British Gas will see families save up to ยฃ450 on their energy bills, all while cutting emissions.โ€ 

British Gas and sister company Hive are also looking to make heat pumps simpler to understand. Smart home expert, Hive, and heat pump manufacturer, Daikin, have recently announced that they will be integrating heat pumps into the Hive smart home technology with trials due to begin later this year.

For more information, visit: https://www.britishgas.co.uk/energy/gas-and-electricity.html


[i] Up to ยฃ450 save claim, covers three areas:

  • Up to ยฃ269ย energy saving: Based on medium household consumption (11,500 kwh annual usage) and no gas used for cooking vs SVT price cap (April 2024).
  • Up to ยฃ67ย saving compares customer with D rated boiler (yearly energy usage: Gas 11,500kWh, Electricity 2,700 kWh; no gas used for cooking) to customer with air source heat pump (SCOP 350%; yearly household electricity usage of 5,263 kWh; yearly heat pump electricity usage of 2,563 kWh;ย no longer uses gas). Both customers paying UK average April 24 direct debit price cap rates.
  • Up to ยฃ115ย Standard charge saving: 95% of our installations make the property gas free. On average, a ยฃ115 annual saving is possible by capping a gas meter, removing the standing charge.

Heat pump energy offer terms:

  • Heat Pump energy offer only available on installations purchased before 31st September 2024. Discounted rate of 14p per kWh for heat pump consumption applies for 12 months. Discount excludes standing charge. Discount applied to next bill as a credit. Must be new energy platform, direct debit customer. Electricity account must be registered at the same address as your heat pump installation. Smart meter required.

[ii] Based on electricity prices as of 16/05/2024 and current live rates in the market. British Gas is the current lowest โ€˜type of useโ€™ all day heat pump rate.  

[iii] British Gas acts as a credit broker, not the lender and offers products from a panel of lenders. Payment options are subject to change without notice. British Gas is a trading name of British Gas New Heating Limited (No. 06723244), an appointed representative of British Gas Services Limited (No. 03141243) which is authorised and regulated by the Financial Conduct Authority (Financial Services Register No. 490568). Both companies registered in England and Wales. Registered office: Millstream, Maidenhead Road, Windsor, Berkshire SL4 5GD. Availability of credit depends on status and credit checks. Terms and Exclusions apply.

[iv] Research of 2,000 UK homeowners conducted by Censuswide in March 2024 on behalf of British Gas.

ยฃ530million cash boost for fire stations, schools and hospitals to help tackle climate change

Emma Clancy

More than ยฃ530million of funding will be handed to schools, hospitals, fire stations, universities and other public buildings across the country to help tackle climate change.

Organisations are celebrating receiving the funds under Phase 3c of Public Sector Decarbonisation Scheme and can now start implementing energy efficiency works in a bid to meet ambitious net zero targets.

The scheme, delivered by Salix and run by the Department for Energy Security and Net Zero, is designed to slash energy bills and reduce carbon emissions and reducing the reliance on fossil fuels.

Salix Finance Chief Executive Emma Clancy said: โ€œClimate crisis is one of the greatest challenges of our time. It requires all of us, including governments and business to make change and reduce our carbon footprint.

โ€œThe Public Sector Decarbonisation Scheme enables the public sector to tap into a fund which can transform our public buildings. These are the sites we use every day; our schools, universities, leisure centres and others will become more energy efficient as well as being comfortable places to use thanks to this funding.โ€

For a list of successful grant recipients see here.

Minister for Energy Efficiency and Green Finance Lord Callanan announced the allocation of ยฃ530,604,960million today under the Public Sector Decarbonisation Scheme. It will be spread across classrooms, hospitals, leisure centres, fire stations and leisure centres among other buildings to drive down their emissions by installing low-carbon heating systems.

A total of 189 organisations have been awarded grants for 222 heat decarbonisation and energy efficiency projects. Additional funding will be allocated through Phase 3c over the coming weeks.

Royal United Hospitals Bath (RUH) NHS Foundation Trust has received ยฃ21.6m under the scheme. The multimillion-pound cash boost will fund improvements including more environmentally friendly lighting, insulation, and heating and cooling controls. Although most of the funds will be used to de-steam much of the RUHโ€™s 52-acre site, replacing the hospitalโ€™s ageing heating systems with more energy-efficient options like heat pumps.

RUH Chief Executive Cara Charles-Barks said: โ€œWe are beginning to make great strides to reduce our emissions, through initiatives such as decommissioning our entire nitrous oxide manifold and a sustainable travel plan. However, we knew we needed to make significant investments in our estate to fulfil our commitment of reaching net zero for scope one and two emissions by 2030, in line with BaNES Council’s goals.

โ€œThis grant is therefore invaluable. It will enable us to make these essential changes in the coming years and will have a positive impact on the environment and the experience of being in hospital. We know that getting this right will be better for the health and wellbeing of the people we care for, the people we work with and the people in our community.โ€

Another grant recipient is Royal Berkshire Fire and Rescue Service which has won ยฃ927,845 from fund.

Theservice intends to invest ยฃ1.77 million in sustainability improvements over the next two years across five of its least energy efficient buildings. And features will include new LED lighting, solar panels, air-source heat pump systems and improved building insulation.

Mark Arkwell, Deputy Chief Fire Officer, said: โ€œAs a fire service, we are committed to ensuring we are doing all we can to reduce our impact on the environment.

โ€œThis funding is a fantastic boost to help deliver our ambition of rapidly improving our estate for the benefit of staff, public and the planet. I believe itโ€™s right for us to play a leading role in responding to the climate emergency and with 65% of our carbon coming from the estate we are sensible to focus on this area first.โ€

Nottingham College has been awarded more than ยฃ2.6million, in a successful bid to fund decarbonisation and energy efficiency initiatives across its estate over the next two years.

It will be used to pay for upgrades to campuses heating, ventilation systems and lighting, as well as to replace boilers, improve insulation and introduce other new measures to reduce water usage and reliance on other consumables.

Janet Smith, chief executive and principal of Nottingham College said: โ€œWe are really pleased to have been successful in our bid for this funding. As a college with a rich heritage and wide range of facilities across the city, this funding will help us on our journey to be carbon net zero by 2030.

โ€œThe Collegeโ€™s Zero campaign has seen us make great strides over the past 12 months with a 30% reduction in our carbon footprint so far โ€“ but we know there is more to do.โ€

Other successful projects include; Loughborough University whichhas been awarded more than ยฃ2 million to decarbonise their Olympic size swimming pool by replacing old gas-fired boilers with heat pumps. Surrey County Councilhas been awarded over ยฃ5 million to cut emissions across nineteen sites including six libraries, four nursing homes, two community centres, five schools, Guildford Fire Station, and the councilโ€™s headquarters in Reigate.

More than 1,000 buildings have already received upgrades through the Public Sector Decarbonisation Scheme which was first launched in 2020. Phase 4 of the scheme will be launched in the summer giving further opportunities for public sector organisations to win funding for energy saving measures.

How to Transition to Net Zero: An Engineerโ€™s Perspective

Nick Boid

Itโ€™s no secret that time is running out on our journey to net zero. Taking the path of decarbonisation is challenge enough for small enterprises but this escalates to a daunting scale when it comes to large energy users across multiple buildings and sites, including business use estates and education, particularly university campuses. Itโ€™s all well and good encouraging the people going about their business on the estate to use less energy, but compliance canโ€™t be forced and even with perfect adherence itโ€™s only going to get you so far.ย  It can seem a daunting challenge, even for seasoned Estates Directors. Nick Boid, Technical Director, Energy at Buro Happold, provides insight into how large estates can get the ball rolling and what to expect along the way, there is a lot of ground to cover before you can start to plan to decarbonise.

Where to Start?

The key to any solution always lies within your understanding of the problem, making the transition to net zero is no exception. You need to first understand where you are currently, to see how far away you are from where you want to be. This means the first step for any estate is to establish the baseline, in other words, do you have good metering data? If the answer is no, then the first step will be to get that data. This could mean installing temporary metering equipment, something Buro Happold have done for a number of clients to get a sense of what they are using, when and where. After all, if you canโ€™t measure it, you canโ€™t manage it!

If you do have comprehensive metering data and with it a full picture of your estateโ€™s energy usage, your first step will be to analyse and importantly, understand that data. Consider where the estate is performing well and where changes need to be made. Look at ways to reduce your energy consumption before you take any further steps because this will only aid the rest of the journey.

A big benefit of being in control of your energy data is that you can use it to inform decision making, particularly when it comes to funding. In order to facilitate future changes to decarbonise it will be critical to funders, whether internal within the organisation, or external, to truly understand the benefit that will be created against the investment. Having visibility of what energy is being used every month, how it is being generated, how much is being spent, and what the carbon emissions are will be invaluable when it comes to getting finance.

Capacity that is fit for purpose

And timing is everything (apart from data). From an engineerโ€™s perspective, itโ€™s especially useful to know when energy is being used, when in the day and when in the year. Energy used for heating, for example, is going to be disproportionately used in the winter. Analysing how much energy an estate uses during peak times will drive the capacity of the equipment you need and will typically determine your capital cost. The trap a lot of estate owners fall into is assuming that the equipment they currently have in place is the right capacity, so replace it like for like. However, in many cases estates have an unnecessary capacity surplus because it hasnโ€™t been installed based on actual use. This reaffirms the importance of having in depth metering data, in an ideal world this would be half-hourly usage data, because you can potentially make a substantial saving on the new solution by not oversizing the new equipment.

Build a demand model

The next stage for Estates Directors in the transition to net zero is building a demand model based on the energy use data. You can then compare the model to industry benchmarks for energy use, making it clear which buildings are performing well and allowing you to identify any potential outliers. This approach of cross referencing also enables you to validate the data, if it looks wildly different from the industry benchmarks then the chances are, there is something wrong with your measuring equipment. Inevitably some assumptions will need to be made when creating a model, but you can build in the life cycle of the estate, including known capital plans, for example, are there plans to demolish some buildings or sell any?

An additional benefit of building a model is that it highlights the high energy users on the estate, for example, if there is a data centre on the estate this will likely use the most energy. Once you understand the uses of energy across the estate, you can then look at the applicable options for energy efficiency such as replacing lighting with LEDs or implementing scheduling controls. You should also be able to see what, if any, building improvements need to be made and where, do you need to improve the glazing in some buildings but the cladding in others, for example.

A good model will then reveal the savings you will make from improving the energy efficiency of the estate. On average, you can expect around a 10-30% saving but this will vary from estate to estate depending on factors such as age and condition.

Switch to cleaner, greener energy supply

Once the model is complete you can turn your attention to more sustainable energy sources. This will be unique for each estate, dictated by the estateโ€™s characteristics. For example, is there a data centre on site? You could utilise the waste heat this kicks out to heat other buildings. Have you got any groundwater, or water sources that could be used as low-grade heat sources combined with heat pump technology? Would a wind turbine be appropriate or solar PV panels for renewable electricity generation? It’s also worth considering if you can store energy. having the capability to store low carbon energy for example, through battery storage, can offer flexibility in how you use the energy produced on your estate and help prevent waste.

The answer could be a combination of clean energy solutions. Are there any steps you need to take before changing your energy supply? If youโ€™re operating an existing heat network using steam, the most sensible first step is to try and lower your operating temperature. This will make your energy solution more efficient in the short term and prepare the network for lower temperature heat generation technologies such as heat pumps in the future.

Something you might find surprising is that itโ€™s much harder to upgrade/retrofit buildings than it is to switch energy sources. The general consensus seems to be that we have to upgrade all our buildings until they are all at a certain standard, and then we make the heat generation switch to say, heat pumps. However, this fails to consider that the cost per tonne of carbon saving gets higher the more retrofitting you try to do. Usually, there is also a limit as to how much disruption you can cause. For example, will work have to stop while you are retrofitting a particular building or is there somewhere you can temporarily move the operations? One solution is to prioritise making small, less invasive changes to the building fabric ahead of changing the energy source, for example removing drafts and reglazing windows. This would decrease the level of disruption while increasing the efficiency of the new energy source, and of course, reduce the associated running costs.

When it comes to cutting out carbon – make a plan

You know what they say, fail to plan, plan to fail. Once you have your metering data, model and have thought about plausible clean energy sources itโ€™s time to sit down and synthesise this into a decarbonisation plan. This needs to cover the broad strategy, proposed timeline and an estimated budget that includes both the cost of the net zero transition and the impact on operating cost. You canโ€™t do everything all at once, so think about the most sensible path to get to where you need to be. For example, if you have a heating system with five boilers, it may not be financially viable to replace them all at once. But you could replace one now and the rest over a period of say, 10 years, which would both spread the cost and give you time to get comfortable with the new technology.  

In your plan itโ€™s particularly important to consider how youโ€™re going to fund the transition to net zero. Can senior management solely fund the project? Will you need to find a private investor or apply for public funding? There are many private organisations looking to put money into the improved energy performance of large estates, so this is worth considering. It is quite clear that in this current economic environment that the pot of public money for decarbonising public estates will be limited. Which means that, even to partially fund the transition to net zero, you need to have a comprehensive plan ready to submit quickly because the competition will be fierce. 

Once youโ€™ve started implementing changes, itโ€™s important to go back and keep your plan updated on how things are going. Keep a close eye on factors like energy price changes and review your plan every couple of years.

What is the biggest challenge?

The biggest challenge faced by most estates when it comes to transitioning to net zero is getting off the gas grid.

Large estates often already have an onsite heat generation solution such as gas CHP. Historically this has worked well because gas is cheap, so it has avoided estates having to fulfil their heat demand requirements through expensive electricity. However, with the main priority now being to achieve net zero, this doesnโ€™t make sense from a carbon point of view. Electricity is becoming cleaner, and crucially, we need to stop burning gas.

Transitioning to electrification of heat and the effect this has on the campus electrical demand and infrastructure is a major challenge facing many estates and one that needs to be solved in a pragmatic way. One way to approach this is to confirm what headroom is currently available on your incoming supply and focus on what buildings can be implemented into that first phase heat transition. Then you can consider increased grid connection and infrastructure reinforcement as a longer-term plan.

Inevitably the transition to net zero for any estate is going to be a lengthy, multifaced process. All estates will use roughly the same decarbonisation route map, but of course, the specifics will vary widely.

The main pieces of advice to get you moving in the right direction are to get good metering data, make a plan and start by getting started. Even taking small steps towards decarbonisation will be better than doing nothing at all.

Study flexibly online, on-demand or interact in the live virtual classrooms with the Renewable Energy Institute

The renewable energy sector is booming, and the demand for trained personnel is on the rise. As more and more countries advance their efforts to reduce their carbon emissions, the renewable energy industry is set to play a pivotal role in meeting this challenge. This has led to a surge in job opportunities in the sector, and there is an urgent need for skilled personnel to meet the demands of this rapidly expanding industry.

The REIโ€™s accredited Master in Renewable Energy Award has been designed to educate individuals with an in-depth overview of the sector as a whole and to expand their knowledge in specific technologies which are of most interest to them and their careerdevelopment.

With access to 15 renewable energy and energy efficiency courses, participants can study a wide range of technologies to kick start a new career path or advance in their current role

As part of the Master Award, participants can choose to study in our upcoming Hydrogen Energy, Renewable Energy Management & Finance and Carbon Finance Live Virtual Classrooms.

Current and past participants include professionals from Siemens Gamesa Renewable Energy, Mitsubishi, the BBC, The World Bank, Ford, Department of Energy, Climate Change and manyย more can be found here: https://www.renewableinstitute.org/testimonials/

For more information or to secure your place now, please contact the REI on +44 131 446 9479 or email us at training@renewableinstitute.org

How API technology can transform your energy and carbon management

At a time when there is burgeoning pressure for businesses to embrace and drive sustainable practices the integration of technology is key, not only to streamline costs and enhance efficiency, but also to navigate the complex landscape of energy and carbon management. 

Tom Anderton, Head of Customer Succes at TEAM Energy, looks at four ways that Application Programming Interface (API) technology can enhance an energy and carbon management solution and change the way businesses can build a pathway to a sustainable future.

1.          Real-time monitoring and analysis.

APIs can play a crucial role in energy monitoring and targeting software by enabling the integration of various systems and devices. APIs enable data exchange between a range of systems and can allow energy and carbon management platforms access to up-to-data information from various sources. This capability provides instant access to real-time data and helps businesses spot inefficiencies, track consumption patterns and respond swiftly with corrective measures.

2.          Seamless integration

Energy and carbon management relies on a vast array of data from across the business, often from diverse sources and systems. API integration acts as a bridge that facilitates integration and ensuring an effortless flow of data that eliminates data silos and promotes a holistic organisational view. As energy monitoring needs grow, APIs allow for the easy addition of new devices and data sources without significant changes to the existing infrastructure.

3.          Automation

Effective energy and carbon management calls on large quantities of data. From collecting monthly consumption data to generating reports and measuring the success of energy saving projects, automation reduces manual intervention. Automation increases efficiency, saves time, and ensures high-quality, timely and consistent data. APIs can be used to connect software with control systems, allowing for automated adjustments based on energy usage data, which can lead to more efficient energy management.

4.          Collaboration and communication

The ability to share data effortlessly via API technology stimulates collaboration. API connectivity improves communication and information sharing across the wider corporate landscape. Enhanced collaboration supports streamlined compliance, operational transparency and promotes a shared commitment to sustainability.

Successful energy and carbon management relies on accurate, complete and consistent data. In an age when organisations are managing multiple data streams across their business operations, from Internet of Things (IoT), Business Intelligence and Management Information to BEMS data, API technology plays a critical role in accessing and sharing advanced data insights. The data provided by APIs can inform better decision-making regarding energy policies and strategies. As businesses continue to embrace meaningful sustainability, the role of API technology is fundamental in harnessing enterprise-wide data to shape a greener and more efficient future.

www.teamenergy.com

Businesses with Potential for Significant Savings by Switching Water Suppliers

Private hospitals could save the most money per establishment from changing water suppliers at ยฃ8,572.

Schools across England could save a combined ยฃ23.8 million each year.

In 2017, the water market in England was deregulated to encourage competition and improve customer service. This means businesses, charities, and public sector organisations could select their water suppliers for the first time, opening the door to potential savings of 10% per year. However, many businesses have yet to capitalise on this opportunity.

In light of this, a new study by business utilities comparison site Clearsight Energy has spotlighted the business sectors that could benefit most from switching water suppliers, with private hospitals and restaurants among those set to save the most.

The analysis estimated water usage for different business types in England, comparing it to national suppliers’ rates. Although it can vary depending on where a business is based, assessing the number of establishments highlighted potential annual savings for businesses and sectors through supplier selection.

Private hospitals rank first for potential savings from changing water suppliers, with each hospital having an average potential savings of ยฃ8,572. This is the equivalent of ยฃ1.86 million when multiplied across the estimated 218 private hospitals in the UK. Each year, private hospitals across the UK use around 46,977 cubic metres of water each. That’s the same amount of water it takes to wash 657,678 loads of washing.

Poultry farms come in second, with potential yearly savings of ยฃ5,394 per farm. This is the equivalent of ยฃ12.6 million when multiplied across the 2,337 poultry farms in the UK. Each year, farmers use an estimated 29,560,876 litres of water to rear one billion broilers (chickens raised for meat), around the same as 325,170 bathtubs filled with water.

Restaurants take the third position, with each establishment having potential savings of ยฃ2,647 per year. When multiplied across the estimated 42,477 full-service restaurants in the UK, it equates to combined savings of around ยฃ112 million. Each year, restaurants across the UK use approximately 14,508 cubic litres of water each, equivalent to about 61,325 cups of coffee.

Dairy farms place fourth, with each farm potentially saving ยฃ1,638 yearly. An estimated 7,850 dairy producers across the UK could share a combined savings of ยฃ12.7 million annually. On top of this, it was revealed that the price difference between the lowest-priced and most expensive water suppliers is ยฃ24,851 a year.

Schools round off the top five with potential savings of ยฃ974 each year. When multiplied across the 24,442 schools in England, it equates to more than ยฃ23.8 million combined savings. That amount of money could cover 8.8 million school meals. This is equivalent to providing 125 schools with lunches for their pupils for an entire academic year.

RankBusinessAvg. Yearly Water Usage (mยณ)Highest Yearly Supplier Cost (UK)Price Difference: Highest vs. Lowest SupplierPotential Savings Per Location (10%)Sector Savings Potential (10%)
1.Private Hospitals46,977ยฃ159,327ยฃ130,051ยฃ8,572ยฃ1,868,774
2.Poultry Farms29,561ยฃ100,259ยฃ81,836ยฃ5,394ยฃ12,606,405
3.Restaurants14,508ยฃ49,204ยฃ40,163ยฃ2,647ยฃ112,451,280
4.Dairy Farms8,976ยฃ30,445ยฃ24,851ยฃ1,638ยฃ12,858,300
5.Schools5,340ยฃ18,112ยฃ14,784ยฃ974ยฃ23,817,860
6.Beauty Salons1,502ยฃ5,096ยฃ4,159ยฃ274ยฃ13,276,363
7.Cinemas729ยฃ2,471ยฃ2,017ยฃ133ยฃ112,480
8.Office Building481ยฃ1,631ยฃ1,331ยฃ88ยฃ377,927
9.Barber Shops306ยฃ1,038ยฃ847ยฃ56ยฃ1,061,114
Annual Water Savings for Businesses by Switching Suppliers

Placing sixth are beauty salons, with each of the estimated 48,425 hair and beauty salons operating across the UK potentially saving up to ยฃ274 per year. This equates to a combined savings of ยฃ13.2 million nationally on the 1,502 cubic metres of water used daily in each location.

Cinemas rank seventh, with each establishment having a potential savings of ยฃ133 per year. It was also estimated that the 846 cinemas across the UK could save a combined ยฃ112,480 with a simple switch. One of the most significant expenses to a cinema’s water bill is the estimated 4.8 litres from moviegoers flushing toilets, which is responsible for around 63% of customer water usage.

Office buildings have the eighth highest potential water savings at ยฃ88 per building per year. The amount of water used in the 4,308 office buildings across the UK each year is the equivalent of 39 million office water coolers, and when combined, they could save a combined ยฃ377,927 on their business water bills.

Barber shops round off the ninth place. By switching suppliers, the average barber shop could save around ยฃ56 each year on their water bills. Itโ€™s estimated that all the barber shops across the UK could save a combined ยฃ1 million on their water bills each year. Each of the estimated 19,000 barber shops uses around 306 cubic metres of water each year. Thatโ€™s the equivalent volume of half a million pints of beer.

The analysis uncovers substantial potential savings for businesses willing to switch water suppliers. From cinemas to dairy farms, sectors across England stand to benefit financially, with savings reaching into the tens of millions for some. Although savings can vary dramatically depending on where a business is based, this insight significantly underscores the importance of exploring alternative suppliers to operational costs.

Speaking on the findings, a spokesperson from Clearsight Energy said: โ€œThis study highlights a significant opportunity for businesses across England to reassess their water supply choices, potentially unlocking substantial savings with sectors like cinemas and private hospitals poised to benefit the most.

โ€œMany people might not realise that schools have to pay their own bills. They receive core funding from the government to aid essential running costs, including salaries for teachers and staff. However, the schools are still responsible for budgeting, and even though savings can change depending on where a school is based in the country, these potential savings could still provide equipment or educational trips.โ€

This article appeared in theย May 2024ย issueย of Energy Manager magazine. Subscribeย here.

Rinnai: UK to clear a pathway to more electrification?

Chris Goggin

Chris Goggin reviews the UKโ€™s approach to extending and enhancing electrical grid connections to recently constructed renewable energy projects. He looks at how focus could be applied to the potential impact on UK customer options.

For more opinion pieces on UK energy and policy subscribe to the Rinnai newsletter today www.rinnai-uk.co.uk/contact-us/newsletter-sign

Every major country is trying to decarbonise all industrial and commercial operations, knowing that current fossil fuel usage is environmentally unsustainable. Therefore, each notable international economy is currently drafting future energy policy objectives that complement respective domestic energy mixes.

It is a widely believed amongst professionals inside the industry that a range of energies will need to be utilised in realising the target of reducing national carbon loads. As part of the UK plan to decarbonise domestic, commercial and industrial activities widespread electrification will become the major contributor towards reducing national and global carbon outputs.

Widespread electrification is a main objective by UK policy makers who aim to impose the cheapest electricity costs on UK households in the European region by 2035. Over the next 10 years electricity demand is predicted to double, by 2050 UK electrical demand and usage will be twice the amount that is consumed today.

To satisfy future electrical supply and demand the UK National Grid has announced plans for the โ€œGreat Grid Upgrade.โ€ The national grid requires adapting due to a transition away from fossil fuels through electrification. The current UK grid was designed to transport coal fired energy generated from geographically positioned power stations.

Substantial amounts of energy consumed across the UK is now produced from areas that are situated away from the power stations. Offshore wind and solar energy is generated away from UK land, in rural and seaward locations. To cargo renewable energy across the UK means the construction of new electrical grid connections must be created to ensure easy distribution routes.  

The total cost of the upgrade is thought to be around ยฃ16 billion (Fund Calibre, Yardley, 2024) and will include grid connections to offshore wind and rural solar installations that allows for the easy transfer of renewable power to all corners of Britain.

Further electrical grid connections and upgrade projects are being pursued that will also aid in the access of renewable energy to the UK electrical grid resulting in lower customer costs. The UK and Denmark have collaborated in constructing a link that stretches for 475 miles joining Lincolnshire and southern Jutland.

The Viking Link required ยฃ1.7 billion of investment and is capable of powering 2.5 million UK households. National Grid estimate that the new connection will result in ยฃ500 million of savings for UK customers in its first 10 years by enabling a clear path of trade that compliments seasonal demand and price between the two countries.

(all info available at National Grid website).

The UK and Netherlands governments have also announced plans to construct a submarine interconnection that will allow both countries to transfer and trade clean offshore wind generated electricity. The Lion Link will produce 1.8GW of energy โ€“ enough to power 2.5 million homes and is due to be operational around 2030. (Info available at National grid website)  

Scottish Power will also upgrade their transmission network over the next 10 years costing ยฃ5.4 billion. These upgrades will contribute 80-85GW of clean renewable electricity to the British grid.         

Significant work is being completed to adapting and connecting the UK transmission network to clean low-cost electricity. Domestic upgrades and submarine interconnections linking the UK with two additional countries should theoretically provide cost effective supplies of green power to UK businesses and homes.      

Contractors, specifiers, system designers and installers should target manufacturers of decarbonising heating and hot water systems that have aligned their product options within future and current energy policy.

Rinnai will continue to provide UK customers with factual information that influences customer purchasing options with the aim of improving UK customer decision making in domestic and commercial decarbonising heating and hot water systems.  Rinnai continue to monitor all domestic and global news related to all energy matters.     

To take advantage of Rinnai design services and find optimum solution for your next project use our smart carbon calculation services today  https://www.rinnai-uk.co.uk/contact-us/carbon-cost-comparison-form

RINNAIโ€™S H3 DECARBONISATION OFFERS PATHWAYS & CUSTOMER COST REDUCTIONS FOR COMMERCIAL, DOMESTIC AND OFF-GRID HEATING & HOT WATER DELIVERY  

                                                       www.rinnai-uk.co.uk/about us/H3 

Rinnaiโ€™s H3 range of decarbonising products include hydrogen / BioLPG ready technology, hybrid systems, and a wide range of LOW GWP heat pumps and solar thermal. Also, within Rinnaiโ€™s H3 range is Infinity hydrogen blend ready and BioLPG ready continuous flow water heaters which are stacked with a multitude of features that ensure long life, robust & durable use, customer satisfaction and product efficiency. 

Rinnaiโ€™s range of decarbonising products – H1/H2/H3 – consists of heat pump, solar, hydrogen in any configuration, hybrid formats for either residential or commercial applications. Rinnaiโ€™s H3 range of products offer contractors, consultants and end users a range of efficient, robust and affordable decarbonising appliances which create practical, economic and technically feasible solutions. The range covers all forms of fuels and appliances currently available – electric, gas, hydrogen, BioLPG, DME solar thermal, low GWP heat pumps and electric water heaters. 

Rinnai H1 continuous water heaters and boilers offer practical and economic decarbonization delivered through technological innovation in hydrogen and renewable liquid gas ready technology. 

Rinnaiโ€™s H1 option is centred on hydrogen, as it is anticipated that clean hydrogen fuels will become internationally energy market-relevant in the future; Rinnai water heaters are hydrogen 20% blends ready and include the worldโ€™s first 100% hydrogen-ready hot water heating technology. 

Rinnai H2 โ€“ Decarbonization simplified with renewable gas-ready units, Solar Thermal and Heat Pump Hybrids. Rinnai H2 is designed to introduce a practical and low-cost option which may suit specific sites and enable multiple decarbonisation pathways with the addition of high performance. 

Rinnai H3 โ€“ Low-GWP heat pump technology made easy – Rinnai heat pumps are available for domestic and commercial usage with an extensive range of 4 – 115kW appliances.

Rinnaiโ€™s H3 heat pumps utilise R32 refrigerant and have favourable COP and SCOP. 

Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year, operating on each of the five continents. The brand has gained an established reputation for producing products that offer high performance, cost efficiency and extended working lives. 

Rinnaiโ€™s commercial and domestic continuous flow water heaters offer a limitless supply of instantaneous temperature controlled hot water and all units are designed to align with present and future energy sources. Rinnai condensing water heaters accept either existing fuel or hydrogen gas blends. Rinnai units are also suited for off-grid customers who require LPG and BioLPG or DME. 

Rinnai products are UKCA certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours. Rinnai offer carbon and cost comparison services that will calculate financial and carbon savings made when investing in a Rinnai system. Rinnai also provide a system design service that will suggest an appropriate system for the property in question. Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry including detailed CPDโ€™s. More information can be found on Rinnaiโ€™s website and its โ€œHelp Me Chooseโ€ webpage. 

Visit www.rinnai-uk.co.ukย ย Or email engineer@rinaiuk.comย ย 

For more information on the RINNAI product range visit www.rinnaiuk.com