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Take back control of your energy – Here’s how

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By David Kipling, CEO – OEP Group

The last few months will have caused many businesses sleepless nights… unprecedented and previously unthinkable energy prices, their knock-on impact into cost of commodities such as CO2, steel, building materials and even the raw ingredients for manufacturing. Hopefully this period will act as a wake-up call, the equivalent of a “health-scare”, that results in reappraising what we are doing, and metaphorically going to the gym and shedding those excess kilograms.

So how do we take back control ?

The lesson we should be taking is understanding what we are actually in control of, and what we aren’t.  We aren’t in control of wholesale prices, or grid costs, or taxes, or carbon pricing. You can’t fix or hedge for the next 20 years.  Even if you hedged before this crisis, so ducked this bullet, at some point you will face exposure to the market.  Hopefully you are fortunate when you do, but do you really want to take that risk ?

What you DO have control over is your energy consumption, and onsite generation. The best course of action is to reduce consumption – invest in energy efficiency – and become more self-sufficient for your power needs by investing in low carbon and renewable generation.   This way you minimise your exposure to the grid and volatile markets.

Boardrooms now accept that sustainability is a key driver to succeed in both short-term and long-term.  With COP26, increased reporting of carbon performance, clearer road maps being set out by Government to net zero, and the third round of ESOS only 2 years away, there is going to be an even greater focus on action and making changes. There is also a recognition that acting now is the right thing to do to grow long-term shareholder value – morally, politically, legally and to address business risk.

For energy managers and professionals, there has never been a better opportunity to rise and shine.   Board’s don’t know how to do what you do.  YOU are now central to making your business a better company, and in doing so contributing to solving the climate crisis.

Innovation in energy technology has never been more active. With the advent of higher energy costs you can also add an even stronger economic argument to act.  Projects that were previously dismissed due to long payback may now be viable.

Add to this that by the time ESOS reports are finished in 2023 it will be mandatory to enact the proposed measures, and the case is building for focusing on the matters within your control.

Capital is readily available to support investment in efficiency and onsite generation – either directly or through third parties such as OEP Group, to provide the investment “off-balance sheet”.  There is no shortage of money.   It’s a question of priority about where money is allocated.   With the massive changes happening, the priorities are likely to switch to sustainability and to reducing business risk.

Take back control !

If you would like to discuss how to take back control of energy in your business, please contact David Kipling, CEO – OEP Group on 0151 271 0037 or email  david@on-site.energy (www.on-site.energy).

BEMS – Greener, safer, and more efficient buildings

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By Richard Irvin FM

A Building Energy Management Systems, (BEMS) is an intelligent and efficient approach to monitor and control building services such as lighting, heating and HVAC. Information is collected, tracked, monitored and used to control equipment for energy consumption.

As increasing energy costs continue to be a significant challenge, more building owners are using BEMS systems to improve efficiencies, reduce waste and manage costs.

This technology can be used in both residential and commercial buildings. Depending on the size of the premises, building type and budget – the BEMS system can be wired or wireless with both software and hardware integrated to the equipment, devices and appliances. Once installed, systems need to be maintained or they can be upgraded to maximise results.

The Richard Irvin FM advantage:

  • Plan – our engineers and specialists have industry-leading experience to help you get the best possible results from your existing BEMS / plant systems; from survey for new installation to re-commissioning and upgrades.
  • Protect – building users and residents benefit from clean air, set at the right temperature to create a healthy environment. Conserving energy reduces running costs and pollution.
  • Control – monitor and manage consumption based on data, make informed decisions to reduce running costs, act on energy consumption and minimise repairs.
  • Improve – we have the skill to assess, advice, supply and install renewable options such as ground source heat pumps and solar photovoltaic systems to improve both carbon footprint and energy consumption.

Our team of specialists review and recommend the best solution to achieve your goals. From recommissioning to upgrades or building new BEMS / HVAC systems – we will ensure the best possible outcome to prioritise safety and efficiency within the current environment.

Please visit our website www.richard-irvin.com or contact our Energy Division Manager,  stewart.butler@richard-irvin.com.

HH accreditation positions Energy Assets for market transformation

 960 640 Stuart O'Brien
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Energy Assets has achieved accreditation to provide Half-Hourly (HH) Data Collection and Data Aggregation (DCDA) services direct to its growing customer base of suppliers, brokers and end users across Britain’s industrial and commercial (I&C) market.

The company, a leader in energy metering and analytics, has gained Elexon Performance Assurance Board (PAB) approval ahead of the Ofgem-mandated Market-wide Half-Hourly settlement (MWHH) reform planned for implementation before 2025 as part of the government’s transition to Net Zero.

“Half hourly meter reads enable businesses and public service organisations to collect and analyse consumption data in granular detail, which means they are better placed to optimise energy performance, bear down on cost and reduce their carbon footprint,” says David Sing, Energy Assets Group Managing Director (Assets).

“More than this, though, MWHH reform will likely transform the energy landscape for all the I&C sector as this will now include smaller non-domestic customers which had previously been excluded from HH settlement. For example, suppliers will be able to analyse HH settlement data to create customised ‘time-of-use’ tariffs that reflect the consumption profiles of I&C users or manage loads more effectively by incentivising a shift in demand from peak times.

“For Energy Assets, our new HH accreditation positions us strongly to be part of this emerging and more competitive energy landscape.”

Energy Assets currently provides HH services via a third party. Bringing this capability in-house will assure data flow security and enable greater innovation in the ‘end-to-end’ metering, monitoring and analytics service it offers customers. This includes extracting value from HH data through advanced energy management portals and applying machine learning to optimise energy performance in buildings.

Said Stewart Love, Group Commercial Director at Energy Assets: “The PAB HH accreditation means we can bring a new dynamic to the DCDA marketplace, challenge established players and create value for existing customers and many thousands more organisations operating in the I&C sector. It significantly enhances the totality and flexibility of our metering services and data offer.”

Energy Assets is one of the country’s leading independent meter asset managers, meter operators and providers of automated meter reading systems. The Group’s vertical business model also spans utility construction, local network ownership and data services, offering customers multiple touchpoints across the energy landscape.

INDUSTRY SPOTLIGHT: Richard Irvin energy services

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By Richard Irvin FM

Robust energy management doesn’t just help your bottom line – it helps the planet. By providing you with powerful energy monitoring and reporting systems, we can help you bring down costs and carbon emissions.

By giving you deeper insights into how your facilities are using energy, we give you the power to quickly identify solutions and take control of your energy bills.

Sustainability has risen to the top of the corporate agenda as customers, businesses and stakeholders are asking tough questions about corporate environmental, social and governance (ESG) performance. ESG is now mandated at a board level, it’s part of business strategy, and reporting has moved up a level. It is clear that, momentum is accelerating and most leaders will soon be held accountable for ESG performance —if they aren’t already.

We provide more than energy management and project services – we combine this offering with our leading project and maintenance capability to create a complete, end to end and bespoke energy solution. Our ultimate aim is to reduce our customer energy and utility costs, in turn reducing their carbon emissions. We will build a bespoke service for you, whether you’re
looking to lower your bills or meet your obligations to the planet, we’ll give you the tools you need.

www.richard-irvin.com/services/energy-services

5 Minutes With… David Kipling, CEO, OEP Group

 960 640 Stuart O'Brien
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In the latest instalment of our energy management industry executive interview series we spoke to David Kipling (pictured, right), CEO at OEP Group, about the company, the challenges facing energy managers, sustainability, the surging price of gas and why your organisation should be exploring PPA and green tariffs…

What are the biggest challenges facing energy managers in the next 5 years?

There is going to be huge focus on energy in the next 5 years, as businesses see a pincer movement of higher energy prices and increasing pressure for sustainability.  Add to that the next ESOS deadline in 2023 and the increasing disclosure of energy performance via SECR reports, tight corporate budgets and energy managers are facing a perfect storm.

In 2025 we’ll all be talking about…?

Demonstrating progress in implementing the 2023 ESOS findings (which will may mandatory to implement by then, in my view) and also the potential end of Climate Change Agreements (CCA) as we know them.  Businesses’ are going to need to more and more innovative, and are facing a wave of new capital investment.

What should businesses be doing about sustainability?

Our experience is improving sustainability and saving energy costs go hand in hand.   It makes sense to accelerate sustainability and there could also be advantages to your business by being ahead of your competitors in being more sustainable.  The only downside is capital investment is usually required, but that’s where my company can help.

What do you think will be the impacts of the recent high and volatile gas and electricity prices?

It has exposed weaknesses for many businesses in their energy management.  It has demonstrated the risk of higher prices, at levels previously not envisaged, and the potential impacts it could have.  I think businesses will start looking much harder at how to save energy and their hedging strategy.

What is the role of energy broking in mitigating the recent prices?

Energy broking has a significant role to play, mainly in helping businesses choose the right tariff (fixed or flexible) and also in hedging strategy, but they aren’t the whole answer.   Their scope to manage non-commodity and wholesale costs is limited. Energy brokers in reality can only deliver a limited amount of savings, and more control is in the hands of company’s to reduce energy consumption and use onsite generation to reduce market price road bumps.

What priority should company’s have on energy efficiency and onsite generation?

I think it should be at the top of the agenda.  Reducing consumption is the best way to reduce cost (and improve sustainability) and onsite generation offers a defence against market price movements.

Should businesses be exploring PPA and green tariffs?

Entering into a wind or solar PPA is topical, reduces CO2 and offers some defence against volatile wholesale costs.  But it doesn’t protect consumers against non-commodity costs for using the grid.

Green tariffs offer CO2 savings but they don’t impact local consumption.   They are also subject to the grid price changes that we have seen recently.

My personal view is that both PPA and Green tariffs can be inhibiters to change.  If they lock in an amount of usage, this can stop businesses looking for changes that reduce their consumption and their local CO2 emissions. 

How can your business help energy managers address these challenges?

OEP helps businesses both identify energy efficiencies and onsite generation, and fund them using our zero capex model.   We don’t charge for the upfront appraisal that identifies all the measures that could be enacted.  The result is both lower consumption and also stable, predictable prices for onsite generation over the term of our agreement (typically 10 years).

What’s the most exciting thing about your job?

I get a real kick from identifying solutions that have been missed previously.  Also its great to see our projects being built within the customer’s premises and to seeing our proposals become the reality.

And what’s the most challenging?

We still face the “too good to be true” scepticism but its rewarding when they relent and see that what we are proposing can really work, and is supported by the data.

What’s the best piece of advice you’ve ever been given?

Focus.   Its easy to get distracted to jump on the latest bandwagon, but we are going to stay very focused on energy intensive manufacturers, where we can have the biggest impact for our planet.

Case Study: Sustainable Energy Management for Automotive Manufacturers

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By ENGIE Impact

With global, energy intensive portfolios of showrooms, manufacturing plants and electric vehicle charging points, controlling energy usage and spend is a top priority for automotive companies. A decentralised approach to energy management has its benefits, but creates challenges for gathering complete datasets for internal reporting, with added concern that invoices from energy suppliers are often insufficiently monitored and incorrectly charged.

One Fortune 100 automotive company was looking for an experienced sustainability consultant with global reach matched with local expertise, in-depth experience in data acquisition, expense management and green energy procurement, as well as a robust and multi-lingual energy and sustainability platform – and selected ENGIE Impact as their partner.

ENGIE Impact’s international footprint and holistic service offering meant that the automotive company only needed to partner with one consultant for all their global energy and sustainability needs. To solve the company’s challenges, our teams carried out four main phases:
1. Data Acquisition
2. Invoice Validation
3. Supplier Consolidation
4. Green Energy Procurement.

Throughout this mission, our energy and sustainability platform provided the company with immediate visibility into their cost and consumption at the portfolio, regional and site level. Our teams managed an annual energy consumption of 2.3 TWh across more than 2,500 sites globally, processing 33,000 invoices per year received in 23 languages, of which 39% required investigation with the company’s energy suppliers. Over a 12-month period, we procured 235 GWh of renewable energy for the company in Europe. Our client is now better positioned to make data-driven decisions towards their financial and environmental objectives.

Learn more about this partnership at: https://go.engieimpact.com/manufacturer-energy-management

Renewables top 2020 Energy Management buying trends

 960 640 Stuart O'Brien
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Renewable Energy, Solar PV and Carbon Management top the list of solutions the UK’s leading Energy Management professionals are sourcing in 2020.

The findings have been revealed by the Energy Management Forum and are based on delegate requirements ahead this year’s event.

Delegates registering to attend the event were asked which areas they needed to invest in during 2020 and beyond.

A significant 71% are looking to invest in Renewable Energy, 67% Solar PV and 62 per cent each for Carbon Management and Workplace Vehicle Charging.

Just behind were Metering & Monitoring (57%) and Energy Dashboard (43%).

% of delegates at the Energy Management Forum sourcing certain products & solutions (Top 10):

Renewable Energy 71%
Solar PV 67%
Carbon Management 62%
Workplace Vehicle Charging 62%
Metering & Monitoring 57%
Energy Dashboard 43%
Energy Efficient Solutions 43%
Energy Storage 43%
Lighting 43%
Environmental Management Systems/Products 38%

To find out more about the Energy Management Summit, visit https://energymanagementsummit.co.uk.

Can you improve your CHP investment?

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By Onsite Energy Projects

Have you invested in CHP in the last 3-4 years, or are you considering it ? If you haven’t yet, we may be able to provide a zero capex solution delivering significant savings.

If you have already invested, we may be able to help improve returns and reduce your business costs even more by helping you use all the power generated more efficiently.  Likewise if the performance or availability of the CHP has disappointed, we can assist with practical advice and review or renegotiate contract terms.

CCL costs on gas are set to rise by 90% by 2025.  So unless you qualify for an exemption (such as a  climate change agreement), you are going to see your returns eroded.  To those who are “power only” out there, it’s time to think out of the box and ensure you use the heat productively. We can help.

We specialise in making use of the waste heat from CHP or other busines processes.  Technologies to use heat productively now mean that in the right conditions we can use waste heat to produce as low as -40oC (to replace blast freezing, cold stores) or as high as 300oC (furnaces, cooking and frying), and pretty much everything in between, allowing us to reduce energy costs even further.

We can provide a free review of CHP performance, operating costs and options for improvement.

In the right circumstances, we could even purchase your existing CHP and provide discounted power back to you – so you still keep some of the savings and resilience benefits but also release cash for your core business in these challenging times.

This is the reason Onsite Energy Projects exists – we help businesses innovative, 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.

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.

INDUSTRY SPOTLIGHT: Energy Management from Derwent FM

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By Derwent FM

Energy management is fast becoming the key area of focus in facilities management. As the effects of human impact on our climate and environment become ever more apparent and visible, all stakeholders have their agenda.

We are now seeing real investment in environmentally focused projects such decarbonising heating systems, reducing environmental impact for clients but also crucially saving them vast amounts of money. Therefore, pleasing both shareholders and customers.

This will be the key issue over the years to come, it is crucial that businesses adapt and focus on this today.

For more information on how Derwent FM can help with your energy needs, visit https://www.derwentfm.com/service/full-utilities-management/