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Saving money on energy using Artificial Intelligence

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Many use BMS (building management systems) to control your buildings. BMS is seen a “smart” in that it automates tasks that would need a human to do (such as changing set points, dead bands etc). Artificial Intelligence is best known for self-driving cars and playing chess against grand masters!! So does it have any role to play in managing our building better and saving money?

At OEP, we are already using artificial intelligence in two very real building and energy management applications and seeing £££ financial benefits:

(A) Energy Management. We can take in half-hourly meter data daily (no hardware needs to be installed), and identify patterns that could indicate a developing fault or anomaly, so it can be investigated before it becomes a cost, adjusting for weather and other inputs. The system self-learns and gets better over time at spotting new real issues. We oversee the results with our experienced energy management team, and interact with the customer.

An example benefit we picked up within 24 hours, was a (human) BMS programming error that would have cost £60,000 had it gone undetected, and probably would never have been picked up in the consumption on invoices.

In practice this also helps identify and monitor “behaviour” issues across an estate.  For example, we could highlight the differences in working practices between one supermarket and another in how they work with their refrigeration systems.

This is an ideal tool for multi-site operations (retail, restaurants, banks etc) with a rapid payback.  It allows over-loaded energy managers to have a proactive management tool, particularly across an estate of meters.  We can provide a THREE MONTH FREE TRIAL for businesses to find out if it works for them.

(B) We are also deploying AI to directly to manage the BMS, and even manufacturing processes. The software “learns” how the building or process reacts over time to different load events and climate conditions (creating a “digital twin”) and can develop its own strategies for how to optimise the building to (1) deliver the climate goals consistently and (2) at least energy cost.   It can even re-commission the building regularly.  Energy saving are typically 25%-40%.

The benefit of using AI is the ability for it to react quickly to changing circumstances, which other systems aren’t able to do. Other applications we are engaged on include compressed air management and refrigeration systems.

If you would like to know more email us at info@on-site.energy or call on 0161 444 9989.

Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required. 

Coping with COVID-19: Waterscan’s Claire Yeates anticipates the long-term impacts for the water sector

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By Claire Yeates, Waterscan

A great deal of good will come from all this. Yes, yes, I know it is an easy thing for an optimist like me to say but I honestly believe it, having attended many day-long, socially distanced, virtual industry meetings over the last couple of months. That is not to say that it will not be difficult: there are obstacles to overcome in all battles and the collective fight against coronavirus in which we are all currently engaged is no different. 

But here is my take on why the water sector will be a better place once we emerge from current trading conditions.

First and foremost, industry regulator Ofwat and market operator MOSL have not deviated from their unified mission to ensure that the customer is paramount. Protecting customers’ interests is absolutely top priority at this time and they have been working at an unprecedented pace and scale to ensure that no-one is left unsupplied or unsupported in difficult times. Whilst this is an unwavering permanent objective, it is their sheer ‘sleeves rolled-up’, can-do attitude that has enabled many measures to be tabled, consulted upon, and implemented in short timeframes, and of course, without face-to-face contact. This flexible, pragmatic, contemporary approach could continue in a bid to speed up performance improvement in the future. 

And here is another positive theme: we are seeing higher levels of collaboration and engagement than ever before. When the self-supply community met for its Spring forum recently, both Ofwat and MOSL thanked attendees for their efficient responses to numerous calls for information to guide decision-making. Long may this level of customer engagement continue.

All of us working in the sustainability arena will be pleased with the positive environmental impacts that have been reported around the world. Emissions of carbon monoxide have fallen by around 50% in New York. Wild kangaroos have been hopping around downtown Adelaide. Venetian canals are clearer than many can remember, and a drop in air pollution has enabled citizens in India to see the Himalayas for the first time in their lives. Is it possible that these wonderful impacts become ‘light-bulb’ moments for the masses: a collective awakening to the possibilities that sustainable, low carbon economies can offer? We can hope. 

So far so good. I mentioned earlier, however, that there would be casualties in the water sector (just as there will be in many others). Several trading parties have been complaining that they are in firefighting mode and have reduced their service levels accordingly, others claim that they are already in need of monetary support to weather the anticipated financial fall-out. 

To me, this raises some really important questions around business continuity: how is it that some trading parties have been operating at the very outer limits of resilience? What we are seeing are weaknesses being exposed: a lack of business continuity planning, inadequate resourcing, an inability to service customers effectively by maintaining data provision and, in some cases, abuse of the very measures that have been put in place to secure their future… it’s not a pretty picture. 

But, is it a bad thing? A competitive market, by definition, is based on the principle of survival of the fittest. If a business is poorly managed, it does not deserve to survive and thrive. The water market could be more sustainable, trusted, and stronger as a whole if all of its constituent elements were run to a consistently high ethical standard.

My biggest concern about the whole situation is that some collaborative work that had begun to drive real change has been halted. As I write, the focus is necessarily on essential work around water supply and the treatment of wastewater. Added value services have largely fallen by the wayside.

In practical terms then, what are the likely longer-term ramifications of all this for commercial water users? 

Market rationalisation through some trading parties going out of business? 

Probably. While Ofwat is working hard to help everyone survive, it is surely inevitable that some businesses in a competitive marketplace will fail. With this in mind, the regulator is absolutely right to keep its focus firmly on the end-customer. 

Higher prices to level-out profit margins? 

There will certainly be a hole that needs filling to shareholder satisfaction. However, I would hope the shortfall will be delivered through efficiencies and innovation and I am confident that any price increases , if required, will be kept proportionate so long as the measures put in place by Ofwat and MOSL are not abused and problems exacerbated.

Greater competition to maintain or regain market share? 

Likely. It is unfortunate that the water retailers that are most at risk of failure are those smaller companies because these tend to be where enhanced services and innovation lie. Regardless of business size though, all suppliers will have to up their game when it comes to customer service and invest in modernisation and improvement programmes to grow market share. 

Administration burden, dealing with a major meter reading and billing backlog? 

Definitely – and this is really unfortunate because it is so unnecessary, especially considering that enabling customers to maintain visibility of their consumption and continue to process payments positively impacts market liquidity. Many thousands of water meters are located where they can be read safely in accordance with social distancing guidelines. I would urge large water users to prioritise the rollout of AMR and data systems in their operations to further alleviate this issue.

Better business continuity planning and higher levels of transparency?

Possible – but this is one thing that really should come out of our experience of Covid-19. 

Amid the chaos of coping with Covid-19 in the short term, I am confident that the market will emerge leaner, stronger, and performing better than ever before as key learnings are highlighted. Just you wait and see… 

www.waterscan.com

Are you getting the most from your CHP?

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By Onsite Energy Projects

We visit a lot of customer sites and am often struck that the heat from CHP is not being used, or that they have operating problems with the CHP and their returns aren’t what they expected.

I equally see CHP vendors and other proposals to customers that advocate a power only solution, but fail to mention the CO2 consequences or IMPORTANTLY the benefits they are missing if they were to achieve Good Quality CHP (GQCHP).

Why is this using the heat important ?

  • 50% of the energy being produced by the CHP is heat – so not using it just wastes it. It also means your CO2emissions will be around 70% higher if you only use the power than just consuming grid power.  If you can use the heat, you can achieve overall CO2
  • If you can use enough of the heat for useful purposes you can reduce your electricity and / or gas consumption. You can also qualify for exemption from Climate Change Levy (CCL) on your gas costs.   For a 2.0 MW CHP that is worth about £160,000 this year – BUT the CCL rates are going up and by 2025 that saving in CCL will be worth £320,000 a year.

So what can you use heat for ?  Well literally you can apply the CHP heat to provide anything from +270oC to -40oC.  So anything from cold stores, refrigerated food manufacturing, cheese maturing, swimming pools to steam intensive manufacturing and even chemicals, ceramics or glass manufacturing with high temperature furnaces can benefit from CHP.

For one of our clients, we have identified a way to save over 2,000,000 kWh of electricity and 12,000,000 kWh of gas using the waste heat from the CHP – with savings of over £450,000.  For another in plastic injection moulding, we can save around 30% of the costs by using the heat.

This is the reason Onsite Energy Projects exists – we help businesses implement the full potential of both energy efficiency and on-site generation measures.  We recognised the challenge of capex availability and can provide a no-capex, off-balance sheet solution.

If you would like to know more email us at info@on-site.energy or call on 0161 444 9989.

Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required.

Are you ready for a sustainable future?

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World Kinect Energy Services provides targeted energy management solutions and support for businesses looking to increase efficiency, enhance sustainability and reduce costs. 

As a consultative partner, the global energy expert can help companies achieve environmental goals through developing and implementing innovative solutions such as sustainability consulting, electric supply valuations, renewable energy services, carbon management solutions and on-site generation assessments.

Working with clients to identify financial and environmental goals, accessing energy market trends and the latest technology, the team’s expertise and experience helps businesses navigate the complexities of distributed and renewable energy resources to find the most efficient and appropriate solutions.

Find out more by clicking here.

The danger of green energy tariffs

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Entry into renewable energy PPAs soared in 2019, with European corporates signing up for 8GW of power supply arrangements.  Groups of major corporates such as RE100 (http://there100.org/) advocate for a collaborative, global initiative of influential businesses committed to 100% renewable electricity, to work to increase demand for – and delivery of – renewable energy.  Additionally, most energy suppliers now offer green energy tariffs.

As a result more and more businesses are claiming they use 100% green energy, and claim green credentials as a result.  There is a clear view that as a result of entering into these arrangements they feel their job is done.   But have they achieved net zero ?   The answer is NO and they are missing the benefits of genuinely engaging in energy efficiency and sustainability.

The correct order to delivering sustainable energy benefits is:

1st  –  Minimise energy demand in operations through efficiency measures

2nd –  Solve for that reduced demand as much as possible with efficient on-site generation

3rd –   Solve for the residual grid demand with green energy

The impact of adopting PPAs can be the reverse, as the organisation commits to buying their full current demand, which means they are effectively blocked from considering operational changes that reduce their energy demand.  Reducing consumption is key to reduce emissions and gain business advantage.

Don’t get me wrong, I am an advocate of renewable energy but organisations need to be mindful of whether they are (a) committing too much or too early and (b) whether they have addressed all their efficiency opportunities.

Businesses who are genuinely sustainable should take a close look at their own operations for ways to both reduce consumption AND generate their own low carbon power locally.   These measures can take time to deliver, so perhaps the correct approach is to allow room for these savings to work in alongside PPA commitments ?  The long term business benefits of embracing this genuinely can become a source of sustainable competitive advantage.

This is the reason Onsite Energy Projects exists – we help businesses implement the full potential of both energy efficiency and on-site generation measures.  We recognised the challenge of capex availability and can provide a no-capex, off-balance sheet solution.

If you would like to know more email us at info@on-site.energy or call on 0161 444 9989.

Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required.

Coronavirus: Impact of the 20 second rule on water consumption

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By Barry Millar, Operations Director, Waterscan

Last summer, DEFRA launched a wide-ranging public consultation on how the UK could better manage its water consumption in response to the Environment Agency’s grim prediction that we are likely to run out of water by 2050. This consultation offered up a range of proposals for improving water efficiency at individual, local and business levels. One such idea was to set a legal limit on per capita water consumption. 

Less than a year on, the idea that such a measure could be introduced anytime soon has all but vanished amid government guidance for us all to wash our hands more, and for longer, in the fight against COVID-19. While the medical rationale behind this public health guidance is clear, there have been media reports querying the mid to long term environmental impacts of all this additional scrubbing – and it’s a question that some of our clients have been asking too. 

I looked at the data to determine just how big an issue all this additional water use might be.

At home, around 68% of our water use – 96 litres per person per day (lppd) – takes place in the bathroom, with handwashing liable for up to 10 lppd under normal conditions with modern Part G compliant taps. 

Moving to a scenario where each person washes their hands for 20 seconds, roughly 10 times each day, I would expect there to be a net difference of around 10 lppd. Scaled up to a population of 60 million, we’re looking at an additional demand on the water networks of 600 Megalitres per day (Mpd). 

Now, whilst that is not an insignificant amount of water, neither is it catastrophic: it amounts to a little over a 0.5% increase on national consumption. (Compare this, for example, with summertime daily demand which spikes by as much as 25% in some areas of the UK.) Furthermore, much of this increase is likely to be offset by social isolation where, within private households, sanitation would decrease in line with external exposure. A reduction in economic output will further alleviate the impact in the short term.

At the moment then, a nationwide increase of 600 megalitres isn’t cause for concern. But – should this situation extend throughout the summer when we usually experience an inadequate replenishment of resources – the situation might look quite different. It might well even be the tipping point for some water companies in water-stressed areas. 

The bigger picture is that we have a current supply capacity of around 15,000 Mpd day in the UK. The Environment Agency forecasts that this needs to increase by an extra 4,000 Mpd to avoid the risk of interruptions to water supply. 

Boosting supplies alone isn’t enough to secure our water future though: a reduction per capita must also be realised. Per capita consumption in the UK sits at around 141 lppd, with a target reduction of 16% to 118 lppd. The situation we currently find ourselves in then should, at the very least, be considered a real setback in the strive to force per capita consumption downwards to sustainable levels. 

So, how can we balance the 20 second rule, necessary for short term public health, with the 16% consumption reduction required to secure our long-term water supply stability?

It all comes down to making the best of a bad situation by managing assets well and monitoring consumption closely – and this goes for individuals, public sector environments and commercial premises. 

Many meter reading programmes are on hold as I write but it is important to keep an eye on consumption to notice any unusual consumption spikes (or in the case of commercial premises, any recorded water use at all, if a building is unoccupied) as this will almost certainly point to faulty pipework or taps causing leakage. Although an unwanted situation, it presents a fantastic opportunity to monitor premises that are rarely vacant. Anyone with automated meter reading (AMR) technology is well placed to do this essential monitoring which can of course be done remotely and therefore safely. 

It’s also a good time to take stock of essential network assets. Even taps can be an unnecessary drain on resources and cashflow. Older taps often have highly wasteful flowrates of as much as 10 litres per minute, compared to newer taps delivering 2-6. Carrying out replacement works now, or at least factoring this into future workflows, will have a positive effect in the longer term, especially for businesses operating in the hospitality and leisure sectors. 

These statistics in this piece relate to personal use in the home as opposed to commercial use and it’s extremely difficult to draw parallels to create a picture for the likely business impact due to the vast variables in commercial use (compare a manufacturing operation, hotel or hospital to a small office set-up for example). But the same principles apply. 

The drive towards water sustainability is just one of many corporate social responsibility priorities that will undoubtedly be put on hold in these unprecedented times and certainly, we would not advocate any move to limit handwashing to counter this impact. However, there is no time like the present to use this time to plan ahead. Managing and analysing our water consumption a little more is one way that we can all play a role in mitigating the future impacts of our activities right now. 

Do you have a Net Zero strategy?

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The UK has become the first major economy to pass laws requiring all greenhouse gas emissions to be net zero by 2050. The electricity grid is decarbonising (its carbon intensity has dropped by over 50% since 2011 to where it is today – 254 g CO2 per kWh) and is forecast to drop another 50% by 2030. Grid costs are rising to pay for this transition.

A key lies in the word “NET” because whilst some businesses will struggle to reduce carbon, others could actually become POSITIVE – e.g. generating excess renewable power.  New business models and revenue streams could emerge though

So what does this mean for YOUR business ?  How do you develop a net zero strategy ? 

  1. Significant changes will be needed to the way you do business and use energy.  The changes could impact how your employees come to work, how you distribute your products, sell your products, procure your raw materials and use your facilities.  Processes may require to be redesigned and reengineered.  This will mean the ability to embrace change, challenge existing assumptions, innovate and understanding of alternative methods and costs

Businesses should be looking NOW at their own operations and looking for ways to BOTH reduce consumption AND generate their own low carbon power locally in a sustainable way.  Simply buying a green energy tariff is not sufficient. There are many very good long term business benefits by embracing this genuinely, which can become a source of competitive advantage.

For businesses that use a lot of gas, this is going to be particularly challenging. Gas is cheap (5-6 x cheaper than electricity), so changing away from gas will be expensive.

2. Those changes will have financial costs that may not be affordable within conventional capex constraints.  New business models such as energy as a service are increasingly available to help bridge the gap, and enable changes to happen. 

NET ZERO WILL REQUIRE NOTHING SHORT OF AN INDUSTRIAL REVOLUTION, with new business models and technology, and all within the next 30 years.  

These are the reasons Onsite Energy Projects exists – we help businesses innovate, reengineer their energy supply chain and implement the full potential of both energy efficiency and on-site generation measures.  We recognised the challenge of capex availability and can provide a no-capex, off-balance sheet, solution to make it all happen.

If you would like to know more email us at info@on-site.energy or call on 0161 444 9989.

Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required. 

Do you have a Net Zero strategy?

960 640 Guest Post

The UK has become the first major economy to pass laws requiring all greenhouse gas emissions to be net zero by 2050. The electricity grid is decarbonising (its carbon intensity has dropped by over 50% since 2011 to where it is today – 254 g CO2 per kWh) and is forecast to drop another 50% by 2030.  Grid costs are rising to pay for this transition.

A key lies in the word “NET” because whilst some businesses will struggle to reduce carbon, others could actually become POSITIVE – e.g. generating excess renewable power.  New business models and revenue streams could emerge though

So what does this mean for YOUR business ?  How do you develop a net zero strategy ? 

  1. Significant changes will be needed to the way you do business and use energy.  The changes could impact how your employees come to work, how you distribute your products, sell your products, procure your raw materials and use your facilities.  Processes may require to be redesigned and reengineered.  This will mean the ability to embrace change, challenge existing assumptions, innovate and understanding of alternative methods and costs

Businesses should be looking NOW at their own operations and looking for ways to BOTH reduce consumption AND generate their own low carbon power locally in a sustainable way.  Simply buying a green energy tariff is not sufficient. There are many very good long term business benefits by embracing this genuinely, which can become a source of competitive advantage.

For businesses that use a lot of gas, this is going to be particularly challenging. Gas is cheap (5-6 x cheaper than electricity), so changing away from gas will be expensive.

  • 2. Those changes will have financial costs that may not be affordable within conventional capex constraints.  New business models such as energy as a service are increasingly available to help bridge the gap, and enable changes to happen. 

NET ZERO WILL REQUIRE NOTHING SHORT OF AN INDUSTRIAL REVOLUTION, with new business models and technology, and all within the next 30 years.  

These are the reasons Onsite Energy Projects exists – we help businesses innovate, reengineer their energy supply chain and implement the full potential of both energy efficiency and on-site generation measures.  We recognised the challenge of capex availability and can provide a no-capex, off-balance sheet, solution to make it all happen.

If you would like to know more email us at info@on-site.energy or call on 0161 444 9989.

Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required. 

Electricity Savings In Plain Sight

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Take a look at your electricity bill. What do you see? Many will probably look at the rate and the bottom line £ amount, and often that’s about it before it gets passed for payment.

Energy savings in the past has been associated with re-broking to secure a better rate.  Even then, fewer than 60% of UK businesses use a broker.  Negotiating a better rate is right and proper. But what you or your broker is actually doing is only affecting around 40%-50% of the bill – the wholesale element – and the scope for savings in that is limited.

BUT TAKE A CLOSER LOOK at your bill – particularly the itemised elements – you will find that over 50% of most electricity bills relates to “NON-ENERGY” costs (we regularly see 58%-60%).

“NON-ENERGY” costs are the recharges being made through your bills for Government subsidies for renewables obligations, contracts for difference and feed-in-tariffs, and also grid use of system charges (DNUos, TNUoS etc). These charges are generally shown as a £/kWh, and are set to rise by 30% over the period to 2030, due to known contractual commitments.   So that’s 30% more on 60% of your bill will impact by 2030 – that’s an increase of at least 18%.

What many businesses don’t realise is that if you generate power at your premises, and don’t use the grid, then these “non-energy” costs aren’t payable as they are only charged based on kWh consumed through the grid.

However, taking measures to generate energy on site may face a longer payback than you are willing to invest in.  This is one of the reason Onsite Energy Projects exists, to help businesses implement both energy efficiency and on-site generation measures for these longer payback measures.  We recognised the challenge of capex availability and can provide a no-capex, off-balance sheet solution

If you would like to know more email us at info@on-site.energy or call on 0161 444 9989.

Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required.

RENEWABLE HEAT ENERGY: Incentive Scheme Set to End

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If you use hot or warm water (or cooling) within your operations, and are interested in reducing your carbon footprint or in using renewable energy, you need to have until 31 March 2021 to benefit from the Government’s Renewable Heat Incentive (RHI) subsidies.   

This subsidy provides a “per kWh” financial contribution for installed qualifying technologies, which helps to reduce the payback time.  The subsidy is paid for 20 years and increases annually in line with the Consumer Prices Index (CPI). The technologies that can qualify include solar thermal,  heat pumps (ground, air and water source), biomass boilers, deep geothermal and biogas combustion.

We can offer a CAPEX-FREE SOLAR THERMAL, using a leading British solar thermal technology, for less than the cost per kWh you are paying presently for gas or electricity.  The heat supplied is metered and installation is simple.   An installation of 150 kW (which is around 450m2) would produce around 190-200,000 kWh of heat annually in UK – at 45oC-60oC – the equivalent of over 100,000 showers.   

This is ideal for swimming pools, hotels, sport facilities, healthcare facilities and companies with a year round demand for hot water (for instance food manufacturing)

We can also help specify and install qualifying heat pumps. 

If you would like to know more, pls email us at info@on-site.energy or call on 0161 444 9989.

Onsite Energy Projects provides energy savings and energy generation solutions to energy intensive businesses, without capex if required.