carbon reduction Archives - Gebs Energy Management

Social Landlords: Simplified Domestic Renewable Heat Incentive Scheme (RHI)

Changes to the Renewable Heat Incentive Scheme

Changes to the Domestic Renewable Heat Incentive Scheme (RHI) have recently been announced. The adjustments have the capacity to remove the barriers to energy efficiency upgrades for some of the most vulnerable consumers in the country.

RHI is a financial incentive scheme encouraging and promoting the installation of heating systems that use naturally replenished energy. It is expected that it will help the UK reduce its carbon emissions and is applicable for both Non- Domestic and Domestic Buildings.

From Spring 2015

From Spring 2015 registered Social Landlords will be able to apply for the RHI Scheme if they have an Energy Performance Certificate which is less than 2 years old. There will no longer be a requirement for a Green Deal Assessment if this criteria is fulfilled.

The Department for Energy and Climate Change (DECC) states that the reasoning behind the changes is that ‘Social landlords often provide homes for some of the most vulnerable people and by making the RHI more accessible, tenants will enjoy warmer homes and lower bills’.

What’s In It For Me?

The RHI will pay the following tariffs per unit, for energy generated, over the next 7 years.

Technology	Tariff
Air-source heat pumps	7.3p/kWh
Ground and water-source heat pumps	18.8p/kWh
Biomass-only boilers and biomass pellet stoves with integrated boilers	12.2p/kWh
Solar thermal panels (flat plate and evacuated tube for hot water only)	19.2 p/kWh

Source UK gov.uk – Updated Nov 2014

Goodbye Oil, Hello Renewable Energy

The DECC says that 365,000 people live in fuel poverty and a further 2.28 million are in fuel-poor households. A large percentage of those who struggle with fuel costs live in ‘off the gas grid’ properties, relying on oil and electricity to heat their homes.

Additionally, many of these households have to pay up-front fuel costs, through pre-payment electricity meters or oil deliveries. Removing the need for a Green Deal Assessment paves the way for homes to be made warmer and lower heating costs for some of the most vulnerable people.

Barriers to change

Landlords in the rental sector both domestic and non-domestic are still somewhat reluctant to embrace energy efficiency, due to the perceived cost of upfront investment required. A large percentage of the UK rented housing stock is still Energy Performance Certificate (EPC) Rated E-G. Private and Commercial tenants often do not have the influence or the appetite to push for property efficiency improvements. There is a thought that if they rock the boat they will be asked to leave. On the other hand, understandably, Landlords think ‘what’s the benefit to me?’ and so do ‘just enough’. Whilst there are many exceptional landlords out there, who understand the importance of energy efficiency in their properties, there are still as many who need to need to be persuaded.

Simplified RHI Funding

Making the RHI funding and improvement process simpler, at least in the Domestic rented sector, should mean only good things for the tenant, the landlord’s property portfolio and the UK’s Carbon Emissions targets.

What is ESOS? What’s it all about then?

ESOS Why?

Energy Saving Opportunities Scheme, or ESOS, is the vehicle that the UK is using to comply with the European Union 2012 Energy Efficiency Directive, Article 8. It is designed to improve business profits, enhance competitiveness, whilst reducing impact on the Environment and Climate Change.

It is estimated that there are energy efficiency savings of around £2bn still to be made by UK business. Most organisations can save 20 to 25% through simple energy efficiency measures alone.

Does ESOS Apply to my Business?

If your business has a physical presence in the UK and that entity meets the ESOS criteria, you will have to take steps to account for your energy consumption and identify savings opportunities.

Does My Business Fit the ESOS Criteria?

Large businesses must make an ESOS return to the Environment Agency. Organisation’s are designated as ‘Large’ if they:

Employ more than 250 people

Or,

Have a turnover of in excess of 50 million Euro’s or a balance sheet of in excess of 43 million Euro’s.

Or,

Has a presence in the UK and the above tests apply.

Public Sector organisation’s will not normally be subject to ESOS. Although some Universities, if they fit the criteria above and are not subject to the Public Sector Contract Regulations 2012, in England Scotland and Wales, or Public Sector Contract Regulations 2005 in Scotland.

Key ESOS Dates

6 December 2011 – 5 December 2015: First compliance phase
31 December 2014: Qualification date for first compliance phase
5 December 2015: Last date to submit formal notification for first compliance phase through the online notification system

The ESOS Criteria Applies To My Business, what should I do?

To comply with the regulations, a ‘Lead Energy Assessor’ will need to conduct an ESOS Assessment to:

Measure your total energy consumption for buildings, industrial processes and transport
Identify areas of significant energy consumption, accounting for at least 90% of your total energy consumption
Identify cost-effective energy efficiency recommendations for areas of significant energy consumption;
Report compliance to the Environment Agency by December 2015

ESOS Audits must be repeated out every 4 years

What does an ESOS Assessment Look Like?

The assessment period must include 31^st December 2013 and end by December 2015. Energy Savings identified and managed continuously up to and including this period is acceptable, but the deadline is December 2015,

The ESOS Assessment has no prescribed format but the Lead Assessor must confirm that it meets all the parameters and reports in all data as required by ESOS.

At least one site visit is required to ensure assessments are not theoretical Organisation’s with a number of similar sites or assets can take a proportionate approach, applying recommendations from one audit across the wider portfolio. If all cost saving energy improvements have been made in smaller sites, using the Assessment criteria from authorised agencies and no significant changes by way of output, refitting or upgrading have been made then New Assessments do not have to be made (although advice in this instance should be taken).

Exemptions from ESOS

Organisation’s which are fully covered by ISO50001 have an exemption from ESOS. In addition, businesses which have had Green Deal Assessments (GDA) or have Display Energy Certificates (DEC) in place may be excluded from this process. However GDA or DEC may not be sufficient so guidance should be sort from the Department of the Environment.

Energy Management First Steps – Simple Energy Audit

What to consider in a DIY Energy Audit

A simple and useful Energy Audit is a good start to bring together all factors to give you a clear picture of how you consume your energy within your organisation. It’s a bit like being a detective and will identify the Strengths Weaknesses, Opportunities and Threats to your organisational energy consumption. What you will need to ascertain is:

What Energy is being used at the site
Meter Readings
Site Plans/Building Layout
Location of Sub Meters, Plant Room
Who are the main consumers of Energy (if known)
A list of main plant and equipment, lighting, heating, ventilation and air conditioning systems and age
What Control Systems are in place
What temperature are your thermostats set to?

Does Energy Consumption Match Day To Day Operations?

If your business is not currently recording and monitoring energy usage you may be able to obtain half-hourly consumption data from your energy supplier. This can show clearly how the energy is being used and from this you can define your optimum required consumption based on occupancy levels or operating shifts and minimise consumption spikes and sporadic uncontrolled energy usage. To maximise the integrity of the data and analysis you will need to know:

Half Hourly consumption data and sub- metering info (where applicable)
The staffing levels for the period, working hours or shift patterns
An understanding of the day to day operations
If available, historical weather conditions and bank-holiday/seasonal shut down dates.

Take a look at the Building

Understanding the building and the management of the in-situ environmental plant, is also crucial to a decent audit. What is the age of the building and is it maintained in good condition. Consider the condition and controls of the environmental plant. The older the systems and the built form for example, then the less energy efficient it will be. Or, if your building has ill- fitting doors or windows, damaged insulation on hot water carrying pipework, possibly single glazing, holes in the external walls and poor insulation then your energy costs will be higher.

Are the Environmental Plant and Controls in Good Condition?

This also applies with the environmental plant, if it isn’t serviced regularly and is as installed in the building on day 1 of operations then the amount of energy consumed, against the benefits to the occupants will be greatly reduced. Just ask yourself, just how many layers of paint are on those radiators and how may room thermostats are sitting next to the print-centre or over a heat source. A simple tip at the end of the day if anything is buzzing, hissing, bleeping, glowing or flashing it is often consuming unnecessary power.

What about Air-Flow?

Also think about air-flow, often we feel think we’re lethargic and tired due to being hot. Often we have seen that it is because air flow has been interrupted within the premises. Over the years, partitions for meeting rooms and offices may have been installed which has blocked the free flow of fresh air.

Speak To The People

Also speak with the employees often they know where energy can be saved because they work with it day to day. Their behaviours and housekeeping impact energy consumption massively, there is a train of thought that most buildings are energy efficient until you introduce people. The users also know that, really, the setting they may have on their workstation is always ‘in that position’ not because it is the most efficient setting but because ‘they can’t be bothered to adjust it’ or waste the time ‘turning it on or off’.

Simple Steps = Savings

If you start your energy auditing journey with these simple considerations, you will start to take control of your consumption and start making measurable reductions. It is a key part of the strong foundations for a robust energy management system and can provide meaningful data for a more in-depth and detailed study which will return more substantial consumption savings and carbon reduction.

If you don’t do any other Energy Management, do this – it will save you money!

Ask for your consumption data from your Energy Supplier

The simplest and most basic way to begin to manage your energy consumption is to monitor your usage levels from your meter readings. Many business premises will have a meter which sends consumption data to your supplier. Requesting your data from them will allow you to identify your average consumption patterns, your lowest running rate and your highest kWh consumption. More importantly, it will allow you to identify where energy is being wasted. For example, if the heating or cooling is operating outside of work hours, or plant has been left running on high when production is at its lowest, then it will be identifiable through the consumption data. Whilst gas suppliers can currently give us a daily overview, data direct from your electricity supplier is more useful, as increasingly commercial premises have meters which download consumption information half-hourly.

How much energy do we really need to use?

In many organisations, energy consumption is a fixed cost, a necessary overhead and traditionally we have paid the bills and thought nothing of it. However, in this age of volatile and ever rising energy costs, we don’t want to stick our heads in the sand and ignore the fact that we don’t actually know what we use, where, and whether it’s being wasted. For example, we have heard from a well-respected energy manager who, through analysis of consumption data for a hospital laundry, identified high levels of usage out of hours. Their normal operating days were Monday to Thursday. To the shock of the Hospital Management, consumption analysis showed clearly that as well as the normal Mon-Thur consumption, the laundry was operating, and consuming, Sat-Sun as well. Investigations showed that a member of staff there had a profitable side-line going; they’d been using the facilities to launder football kit from a local Saturday League for at least 3 years.

Simple Spreadsheets can show wasted energy

Whilst this sort of occurrence tends to be an exception rather than the norm, it does highlight that commercial energy consumption has historically been seen as a necessary but relatively insignificant overhead, justifying little management attention. Ever-increasing costs mean it can no longer be ignored, next to staff costs it is the second highest financial liability, and in some energy intensive industries, the single biggest operational cost. A simple excel spreadsheet can graph your consumption levels, making it easier to identify where there is unexpected or wasted energy consumption. In our experience, every client has had some sporadic or unplanned energy consumption, out of working hours, that could be minimised through simple steps.

Identify your significant energy users and consumers, start to forecast consumption

For those who want to put in place more sophisticated controls, sub metering of significant users and highest consumers is the next step. This means that specific energy management can be undertaken and forecasting can be effected. There are some great bits of software out which track consumption, align it with the electronic building management systems (BMS) and monitor specific and significant consumers within the business, sending alerts to flag up unplanned consumption. Some software, linked to BMS or standalone units, can control lighting, heating, cooling, water temperature and other building functions, allowing a level of control and management which will ensure all energy consumed within the building is controlled and accounted for.

Try the simple things first, look at your consumption data

Back to basics though, if just want to make a start and simply better manage your consumption, through analysis of your usage, taking regular meter readings or obtaining regular data from your energy supplier is the first step. If you take measures to minimise the excess usage, or just reduce the consumption spikes out of hours, it’s this information that it will make a practical difference – and who knows, once you’ve seen the benefits you might want to install a more robust and comprehensive Energy Management System.

Good Energy Habits and Savings Begin With Observation

Take a Good Look, It Might Just Save You Money

Many of us spend at least 40 hours, 5 days a week at our place of work. That might be an office, school, hospital, warehouse, factory, shop etc. Day in, day out, we traipse to and from our desks and workstations, with our thoughts on what we did the evening before, the children, our partners, plans for the weekend, the rotten journey or parking situation.

We may be thinking about the weather and probably what is in store for us in the day ahead. Lots going on mentally in the journey but when was the last time we actually considered the physical site we work in?

What Might You See?

It is fascinating to look at the actual premises with a purpose in mind. It can provide vital clues and quick fixes to help reduce our energy costs. So for a change, on any day, take a step back and really look at the building, you will probably see, at least one or more of the following:

Lights on in empty spaces or on a bright day
Windows open whether it is a hot or cold day and often despite
aircon or heating
External doors left or propped open
Fire Exits propped open
Loading bay doors propped open
Skylights and windows dirty
Windows and doors, ill fitting or broken
External walls with holes in them
Air-con units covered in dirt and debris
Security Lights stuck ‘on’ in broad daylight
Pipes dripping

Every Kilowatt Hour Counts

Whilst there may only be a few of the above list which are relevant to your particular place of work, any of these examples can account for wasted kWh, which equals unnecessary cost and carbon tax. If you are a multi-site business, and if this is replicated across your organisation, then the cost to your business will naturally increase proportionately.

Switch Off – Turn Off

A simple solution to help minimise unplanned energy consumption is to put in place basic shut down and close down routines. Our businesses will benefit from each and every employee following a ‘switch-off, turn-off’ plan at the end of their day, operations permitting.

To ensure that it given the necessary importance, it can be embedded within an individual’s role and responsibilities. Energy ownership can be as prescriptive as required, especially if that individual has responsibility for large consuming processes. However, in most cases, a general statement about energy management is sufficient.

End of Day Routines Make a Difference

Expanding this idea, we have found that including a walk-round routine at the end of the day, by a designated individual who can observe and note unnecessary consumption, works very well. They might take steps to eliminate it there and then or, if it is more complex, start the process of a review leading to consumption reduction.

Take Action, Don’t Ignore It

Mind you, there has to be a robust and timely action and resolution process in place. I’m sure we can all agree that there is nothing more frustrating and disheartening than identifying a problem, using the formal reporting process as has been requested, then waiting weeks before the problem is rectified, if at all. Imagine how annoying and disheartening it would be a person in one part of your building to be continuously having to turn off lights in another part of the building because those in the relevant Department are wilfully ignoring the company line without consequence.

Good Energy Habits and Savings Begin With Observation

Good Energy saving habits begin with observation, how are we currently wasting our resources? Where are we wasting it? What can we do differently? Observation is free and can be done by everyone and, if it is, then energy saving becomes everyone’s responsibility. In summary when energy consumption is owned by the individual then more kWh are saved.

A LIGHT IN THE DARKNESS

PRACTICE WHAT YOU PREACH

We are lucky enough to have the GEBS office across a courtyard, next to our house. Often, when I am called away, I admit I may leave my PC on – but do return to switch it off later. However, with the PC only being 6 months old, I have not been overly concerned as after a period of idleness it shuts itself right down into an ‘off’ state.

I knew it was energy efficient when I bought it, as the badge told me that this piece of kit has all sorts of energy saving credentials (part of the reason we chose it) and so our routine is at the end of the day after shutting down the IT equipment, we close the window shutters and alarm the office. However since summer we have, on occasion, left the shutters open…and here is my tale.

TWINKLE, TWINKLE LITTLE LAMP

After 11pm, when we have taken our dogs out for their last walk of the day, through the office window, I sometimes see a light emanating from my desk. As there’s the possibility that I may have not actually switched my PC off, merely put it in eco-saving mode, I normally ask one of my boys to do me a favour and go over to turn it off. Which, after negotiation on the price of said favour, they have done.

However the boys have been in the US for a few weeks and seeing the little light, I have been going over to make sure the PC is off and not consuming kWh of electricity (you have to practice what you preach) but, to my great surprise each time, I have looked back over to the office there is a little white light winking merrily in the darkness. A few times in the early hours, the thought of the light has been aggravating, so frustratingly I have gone back over to the office to find the PC is logged off and turned off. Nevertheless to be sure each time I have restarted and closed down again ‘just in case’, but still, when I look back at the office, from the main house, I can still see this little white light gleaming at me, taunting me through the darkness.

IF ALL ELSE FAILS CHECK THE OBVIOUS

I must admit it has been challenging me every evening for about a fortnight. I have checked everything except my state of the art energy friendly computer. I have disconnected peripherals, even down to unplugging them from the mains and in the main house done the same for TV’s, DVD’s and Games Systems that might be reflecting in the window of the office making me think it is the PC (despite their lights being bright red and green, not gleaming white). However nothing has stopped the glow emanating from my desk.

So last night I decided to check the PC thoroughly, which I’d previously ignored, you know, the one with a list of Energy Saving credentials as long as your arm. What did I see? Well there is the tiniest of holes in the back of the display and yes, to my annoyance, shining brightly underneath this minute opening is my irritating and kWh-consuming light. While the PC is ‘off’, there are internal components drawing electricity from the mains to power this little light and I am fairly sure it is not the only light on under the case.

ENERGY SAVING EQUIPMENT MAY NOT BE ALL IT SEEMS

A while ago I was told by a told by a PC engineer that older electrical equipment had little lamps in their circuitry to help diagnose any problems, but, these lamps where being phased out, to ensure the unit was as energy efficient as possible. So I must deduce, given the fact that my PC is less than 6 months old and has an energy saving pedigree with award stickers plastered all over over it (including the start up screen), that unwanted lamps are not completely a thing of the past. So from now on I will turn my PC off at the mains each evening as well as the peripherals.

WHAT’S GLOWING IN YOUR OFFICE?

Spare a thought, however, for large commercial offices who may have got the message across to ‘log-off’ & ‘switch-off’. There may well still be little gleaming circuits shining brightly in the darkness, safe under their cases and, whilst it might be only small amounts of energy consumed per unit, magnifying this over all of the kit and peripherals may add up to a significant amount of unnecessary consumption. The message maybe should be ‘log-off’ ‘power-off’ or, to take the burden of remembering from the user, install centralised ‘power-off’ equipment to ensure nothing is able to feed the lamps glowing merrily and, mostly at least, unseen in the darkness.

ENERGY MANAGEMENT ROADMAP

An Energy Management Roadmap?

A map, a route, a pen picture, a plan, a strategy. If you build a house, would you get an assortment of bricks, timber and roof tiles then just throw them together and hope for the best? When you go away on a trip, do you just set off and hope you get to your destination?

A Project with out a Plan?

And how about business Projects? If you don’t know what you are trying to do, how will you know when you have done it? If you don’t know where you started from, how far have you come and far is there still to go? How do you know your business is doing the right things, the things that offer the greatest return for the effort?

Don’t ‘Just Do It’

Nike has a slogan ‘Just Do It’ and we’ve seen “Energy Specialists” urging customers to ‘Take Action’ forget about the Consultants report. However a good consultants report should provide you with a plan to succeed, deliverables and choices that ensure the biggest positive impact for your spend. It is also a starting point for you to decide whether you have the capabilities in-house to do what’s necessary or to identify what help you need to make those gains.

Energy Audits, a Stake In The Ground

Every experienced Energy Management Consultant knows that the Energy Audit is the first step to managing consumption costs. It is proposed that the Energy Audit will be a NON-NEGOTIABLE action, under proposed EU Law. It is also a key part to implementing ISO50001:2011 Energy Management Systems, which may give exemptions from parts of EU legislation. These proposals will legally require a company to submit Energy Reports and without an Energy Audit you could face legal repercussions and fines; you would certainly not be eligible for ISO50001 certification.  Even without that, it makes sense to have one though. You see an Energy Audit has inherent value of its own. It brings together in one place your businesses energy profile. It identifies what types of energy you are using, how it is paid for and how you are currently consuming it. It looks at the technology in-situ, its age, its efficiency, operating times, condition, current and potential efficiency and whether it is well maintained including any service records.

Buildings, Lighting, Ventilation, Heating, Controls, HVAC

A thorough Energy Audit takes into consideration your premises, your occupancy times, how it’s maintained and what condition it’s in e.g. poorly insulated pipes, dirty skylights and windows, holes in the walls, broken windows. It looks at how the environmental and lighting systems are controlled, when they were last serviced or upgraded and what controls are in place.

Not just the wastage but the good consumption patterns.

From analyzing half-hourly consumption, the findings of a good and comprehensive Energy Audit should identify where energy is managed well and where there is wastage and suggest practical steps to make change and provide cost-effective solutions to reduce consumption. It is the turning point, the Vanguard for change and energy efficiency.

Due Diligence and a Viable Business Case

If a double-glazing Salesman turned up at your front door and promised you an instant solution to your growing domestic energy costs, purely by replacing your windows, you’d be dubious. Even if the double-glazing was a good price and you had the money, you would still want to consider whether it might be better spent on solar panels, a replacement boiler, new radiators, roof insulation etc. On reflection, you may not need to spend anything, perhaps you just need to find a cheaper tariff or turn the heating off in the rooms you don’t use or when you are out.

The point is, you would ensure you had properly analysed the situation and formed a clear idea of what would yield the best results before you started, certainly before you spent any money. Why should it be any different at work?

Energy Audits Have Value

Surely it’s inconceivable that a well managed and mature business would consider a programme of significant change requiring substantial capital expenditure on the word of a travelling salesman, without the necessary supporting business case and due diligence? Take Action, Forget about the Energy Audit and Consultants report? You’re not going to do that, are you?

Energy Management – Why are those first steps so hard?

Procrastination – Fear of Failing?

The hardest part of every report I write is the beginning. It is the first paragraph which causes me the most difficulty. Although many of our findings are common across our client’s businesses, that first paragraph has to be relevant and cause the reader to want to read on. Starting it is also the time when I tend to procrastinate or delay, I might decide that moment is a good time to catch up with my filing, check the web-feeds for Energy Efficiency news, do the office washing up and dare I say it I even log into Facebook, anything rather than sit down and make a start on that report.

I do sit down though and I do force myself to write those sentences; as one of my MBA Lecturers said, once you’ve made a start on that first paragraph the words will flow.

It is easy to do the same with any problem or challenge but the solution tends to be the same. If we look at Energy Management. We all acknowledge that rising prices are a problem and that there’s things our business really needs to do about it. We also, if we think about our consumption, probably have a pretty good idea where and how in the organisation it is being wasted. So why are we procrastinating and leaving things as they are?

Why Don’t We Manage Our Energy?

Some of the reason’s we’ve been given for not tackling energy efficiency are

‘surely my PC/lights/phonecharger being left on won’t make a difference’

‘you don’t understand our business, it’s not that progressive’

‘the board aren’t interested’

‘we have so many other initiatives and processes, we don’t have time for Energy Management’

‘but I’m too hot / cold normally’ (dependent on the weather)

‘we might upset the ladies upstairs’

‘the ladies get cold’

‘the ladies are of a certain age’ (ladies seem to get the blame an awful lot when it comes down to office temperature)

‘we don’t have the time’

‘we started it but no-one was interested so we don’t do it any more’

Energy Management, Not Extra, Just DIfferent

Often the simplest explanation is that businesses don’t know where to start the task of managing their energy consumption. Like getting the first words down in the paragraph it is easier to focus on something else rather than grasp the nettle and get on with it. Energy Management does not have to be ‘extra’ work, but it does mean doing things differently and smarter. It doesn’t mean your office has to be too warm/cold or uncomfortable for ‘ladies of a certain age’ – it just gives you control.

Gain Control, Make Savings

Once you have control and energy consumption transparency you will start to make savings; which the Board should be interested in because it reduces overheads and tax liabilities and, given that the phone charger left on is probably one of many within the organisation, the new routines will show clearly that switching of unnecessary equipment will make a difference.

Get Started, See Results

Finally once you get started, the results of your endeavours will drive the programme forward and the fear of failing will be replaced with the satisfaction that you are making a difference.