Challenging Winter Ahead for Triad Season

Winter is fast approaching and the Triad season will soon begin. This is an important time for many large UK consumers as they seek to lower transmission costs by reducing demand during potential Triad periods. Triads are three half-hour periods with the highest electricity demand between the start of November and the end of February and each Triad must be separated by at least 10 clear days. This means consecutive days of high demand won’t result in multiple Triads.

If your electricity contract allows it then reducing your demand at these specific points will result in lower transmission charges. However, knowing when Triads occur is a complex business so, to help our clients, EIC provides a Triad Alert service. We have successfully forecast each of the three Triad periods for the last 8 years, saving customers millions of pounds in transmission charges.

Pandemic continues to suppress demand

Winter peak demand is at its lowest point since 1992/93 and is now 14 GW (~24%) lower than the peak of 2010/11. There are a number of factors that have contributed to the fall in peak demand over the past decade. These include improvements to the energy efficiency of appliances, an increase in LED lighting and a rise in embedded generation.

However, in 2020 we can add another significant contributor to demand reduction. The coronavirus pandemic has led to a dramatic fall in peak demand since mid-March. Demand has increased since lockdown ended but is still lower than previous years.

National Grid are currently forecasting peak demand over the Triad period to be around 43-44 GW, slightly lower than last winter’s peak of 45 GW. The winter demand forecast looks to be flatter than previous years, making predicting when Triads will fall far more challenging. It is therefore important to receive Triad alerts from a trusted and reliable source such as EIC.

EIC’s record of Triad season success

EIC has an in-house model which has successfully forecast every triad period for the last eight years. We issue clients with comprehensive alerts advising them when a Triad is forecast, so they can reduce consumption accordingly.

Our Triad Alert Service forecasts the likelihood of any particular day being a Triad and sends alerts before 10am. Businesses can then take action to avoid high usage during these periods, while minimising disruption to everyday activity. We also monitor the market throughout the day and send out an afternoon alert in the event of significant change. The daily report can also help you plan ahead with an overview of the next 14 days alongside a long-term winter outlook.

Calling daily alerts would generate a 100% success rate, however this could have a negative impact on our clients. Organisations would incur major damage to revenues if required to turn down their production each day for 4 months ‘just in case’ and at EIC our aim is to provide as few alerts as possible. Over the 2019/20 Triad period we called just 13 alerts while the average supplier issued over 20.

Triads granted extra year

In December 2019, Ofgem published their final decision on the Targeted Charging Review (TCR). The main outcome of this decision is that, from April 2021, the residual part of transmission charges will be levied in the form of fixed charges for all households and businesses. However, as a result of the coronavirus pandemic Ofgem has decided to delay this by a year. This provides an extra opportunity for consumers to benefit from Triad avoidance before TCR changes arrive in April 2022.

With the TCR, Ofgem aims to introduce a charge it considers fair to all consumers, not just those able to reduce during peak periods. For the majority of consumers these changes will lead to a reduction in transmission costs. However, for those who are currently taking Triad avoidance action it is likely that their future costs will rise.

How we can help with Triad season

We have helped hundreds of clients avoid these transmission costs by providing them with the tools needed, giving EIC an enviable track record in Triad prediction.

Last year, our customers cut demand by an average of 41% compared to standard winter peak-period half-hour consumption – resulting in significant cost savings. Clients who responded to our Triad Alerts, saved on average £180,000. Our best result last winter saw a client saving nearly £1 million in TNUoS charges.

The Triad season starts on 1 November. Find out more about our Triad Alert service.

Can a flexible energy system lead us to net zero?

A recent project launched by Carbon Trust and Imperial College will explore the potential for a flexible energy system and its future role in decarbonisation. EIC looks at what a flexible energy system is and how it can reduce the cost of reaching net zero carbon emissions in the UK by 2050.

What is a flexible energy system?

New technology has the potential to turn our passive energy system into a smarter, more sustainable one in the very near future. This means modifying generation and/or consumption patterns in reaction to change in demand or price.

There are three main ways to achieve flexibility in the energy system:

  • Interconnection: purchasing power from neighbouring markets at times of peak demand.
  • Storage: storing excess energy and using it at times of peak demand.
  • Flexibility on the demand side: consumers cut their discretionary power use at times of peak demand for financial incentive.

Until now, flexibility in the energy industry has typically been provided on the supply-side. Now it’s becoming clear that demand flexibility will be crucial for balancing the system in order to reduce costs and decrease carbon emissions. With smart meters that can reduce consumption at peak times and financial incentives, demand flexibility could be an easy and rewarding energy option for consumers and energy operators alike. A report from the National Infrastructure Commission says that £200 million a year could be shaved off the UK’s grid operating costs if just 5% of the current peak demand were met through demand-side solutions.

There are also smaller scale assets that could prove just as effective at balancing the grid, like distributed energy resources (DERs) such as nearby or on-site solar panels, wind turbines, heat pumps or batteries. By reducing demand on the system, there’s less reliance on non-sustainable energy sources during peak demand periods. These smart solutions are becoming increasingly cost effective and in-demand, evidenced by their sustained fall in price and rising investment interest.

Why the UK should lead the world in smart power

Greener policies have seen increased support in recent years, with an emphasis on renewable energy. A strategy set out in another NIC report for 2020 – 2050 recommended 50% of all generation should be supplied by renewable power by 2030, and an entirely zero-carbon electricity supply by 2050.

The question is, how can this level of renewable integration be implemented in a consistent and cost-effective way?

One of the current issues with renewable generation is it is fairly inflexible, so finding more flexibility through demand, interconnection, and storage is key. It could also be the most cost-efficient way to reach net zero. According to an NIC report, Smart Power, a more flexible power system could save consumers as much as £8 billion a year by 2030.

Finding flexibility with EIC

Achieving more flexibility in the energy system is an integral part of EIC’s client commitment. Through a variety of services, including flexible procurement, smart metering, and many years of experience working with carbon monitoring and compliance, EIC goes to great lengths to offer consumers freedom and flexibility. Our goal is to find the bespoke energy package that best suits your business or property, while simultaneously lowering your costs and carbon emissions.

Find out more about our energy management services.

 

LED lighting: Reducing costs and carbon at the same time

The past decade in carbon savings has been awash with success stories surrounding the installation of LED lighting systems. EIC has summarised a few public sector examples below and guidance on how your properties could benefit from a lighting upgrade.

Success in the NHS

A UK NHS trust recently made facility management news as it implemented a comprehensive upgrade to its lighting systems. Undertaking a site-wide LED installation means that the trust will now enjoy savings in excess of £180,000 annually. Provided these savings remain consistent, the project will have paid for itself within six years.

The gains of the forward-thinking trust are not only measured in pounds and pence; the switch to highly efficient LED lighting, whose lifespan is more than quadruple that of its fluorescent counterparts, also means reduced maintenance as well as a significantly diminished carbon footprint.

Capital gives green light for LEDs

Earlier this year, the city of London underwent a large-scale retrofit of over 8,000 traffic signals, regulatory box signs and push buttons. Upgrading these sites to LED lighting is expected to deliver energy and cost savings of 75% for Transport for London.

“It’s making our infrastructure greener, more sustainable and cheaper to run and not only that but as LEDs are more visible it is making our roads safer…”

– Glynn Barton, TfL’s Director of Network Management

This conversion echoes another 2018 retrofit that saw 25,000 London signals at 900 sites upgraded with similar technology.

Hertfordshire County Council is taking this attitude a step further and has pledged to replace all the street lighting in its seat with LED illumination. The project reached its final stage earlier this year and the council expect it to reduce street lighting CO2 emissions by more than half. In material terms, this equates to 12,000 tonnes of carbon dioxide and £5m saved for the residents of Hertfordshire.

The Power of LED

The commercial picture

The benefits of LEDs are not just public sector, businesses can also make significant savings with this technology. Consider that a 20% reduction in energy costs can have the equivalent economic effect of a 5% increase in sales.

The difference with an LED installation is that it is permanent, and not subject to market conditions.

Traditional lighting actually wastes 95% of the energy it uses on the heat it produces. Since it operates at low temperatures, LED lighting reduces this waste by 90%. This also makes LED a much safer option if the lighting is located near human activity.

By effectively removing this heat source, temperature control systems like air conditioning will operate with greater efficiency. As EIC’s TM44 blog demonstrates, this too can equate to significant savings.

Light the halls

While the office Christmas party may be cancelled this year, it’s worth mentioning the seasonal savings potential of LEDs.

Granted, decorative lighting is not a year-round expense, but incandescent bulbs can run up quite a bill, especially for smaller retail businesses.

Fortunately holiday lights are now also available as LEDs, with several benefits included. Aside from the aforementioned savings, LED lighting is much more durable as well. Epoxy is used in place of glass to create their lenses, so they are highly resistant to breakage.

Bulbs last dozens of holiday seasons before needing replacement and low voltage requirements means many can share a single outlet.

EIC’s Lighting Solutions, including complimentary lighting control systems, has helped dozens of organisations. These controls include movement sensors, time clocks and light sensors which can all support an LED upgrade in reducing costs and CO2 footprint.

The EIC service includes initial surveys to establish the unique needs of a site, later formulating a bespoke proposal. Once installation is complete, EIC will also provide supplementary training to teams within an enterprise to ensure the new equipment is used as effectively as possible.

A full breakdown of this service is available by contacting the EIC team here.

 

Simplifying Display Energy Certificates

EIC discusses the purpose behind DECs, the benefits they offer and how the EIC carbon team can help you secure one.

What is a DEC?

Display Energy Certificates (DEC) have been a required document in public buildings since 2012. While some structures are exempt, those with floor space of less than 250m2, larger buildings fitting certain criteria must comply. These are properties that are occupied by a public authority and frequently visited by the public.

The certificate summarises the energy performance of the building based on criteria known to affect energy demand and usage. These criteria include the type of building under assessment, its total floor area and fuel use.

Accreditors then measure this data against specific benchmarks to determine the building’s overall energy performance. Newer buildings are more likely to have consolidated record keeping on a building and their HVAC. However, older properties may need to collate this data from various departments and archives.

Since data might be stored in a multitude or locations and formats, this process can be complex and time-consuming. However, the more intelligence that can be sought, the more valuable the DEC becomes in its ability to help identify sources of energy waste.

What are the benefits?

The primary benefit of a DEC is to provide a litmus test for the current energy efficiency of a building. This data can then guide improvement strategies for the structure’s utility usage, thereby reducing their demand and subsequent cost. Only accredited assessors are qualified to analyse and deliver DECs. Part of their service is identifying opportunities for improvement and providing guidance on how to implement these improvements as well.

DECs also communicate your commitment to carbon reduction to visitors, due to the requirement to display them prominently. As consumers become more aware of the effect of their spending habits on the environment, it will dictate the businesses they are willing to interact with. A DEC demonstrates dedication to reduce to or maintain an efficient rating for the building.

Do you need a DEC?

If you are a public authority receiving frequent public visitation, with usable floor space in excess of 250m2, then you will need to display a DEC. The validity period of these certificates does vary depending on building size. The DEC of buildings between 250m2 -1000m2  remains valid for 10 years. However, buildings larger than 1000m2 must renew every year.

Those in need of a DEC or those looking to renew would benefit from shopping around. Ideally looking for a compliance specialist that can offer them the most value with their service.

EIC offers an end-to-end DEC acquisition, starting with a comprehensive site survey, if a lack of available data necessitates it. A copy of the accreditation documents will be forwarded to your organisation once the process is complete.

The EIC team pride themselves on providing relief from the complex process of accreditation, allowing business leaders to focus on their own clients and services. To date, EIC has produced over 5,000 DECs and currently manages the renewal process for over 600 sites.

Each of EIC’s EPBD delivery team, have worked within the schemes since their inception, thereby bringing trusted and reliable expertise to your project.

The EIC carbon team provides various compliance services including major carbon-legislative guidance and all EPBD services (EPCs, DECs, TM44). Since these accreditations work in tandem, and share data sets, getting them under one roof can save you some time. While each of these carbon services can be found on EIC’s trusted compliance page, those seeking the DEC offering specifically can find it here.

 

Should SMEs conduct an energy audit?

EIC explores the benefits that firms can reap from conducting an energy audit and how to maximise the value of its findings.

Information is power

Energy audits provide firms with a clearer picture of their energy consumption patterns. In addition, they can highlight existing points of weakness where wastage may be occurring as well as provide a foundation of knowledge for negotiating new energy procurement contracts.

As we approach the 2050 net zero deadline, clarity surrounding energy usage – the major driver behind office-based carbon emissions – will become increasingly valuable.

Small to medium enterprises in particular stand to benefit greatly from the help audits can provide. Especially in navigating information barriers that conceal opportunities to improve their energy efficiency.

While a review of an organisations energy portfolio can seem daunting, technology can help lighten the load. Smart meters can keep an ongoing, up-to-date record of energy usage across an entire site.

Employing one of these devices essentially automates the local data-finding necessary to perform an effective audit. Given how vulnerable long-term metering is to human error, this makes their installation a wise first step in the process.

Metering alone can provide average energy savings of 10% and comprehensive sub-metering can raise these savings by a further 30% according to the Carbon Trust.

An on-site walk around compliments the auditing process since it can identify sources of inefficiency missed by meter readings. Old equipment in need of replacement is one common example. Another being wholesale temperature regulation of buildings since this often does not reflect actual occupancy levels in individual rooms.

The fruits of an energy audit

With the audit complete, realistic energy efficiency targets become foreseeable and have a baseline for comparison of progress. Such a foundation is crucial for effective engagement with carbon compliance schemes like SECR and CCA.

Firms might follow up by installing site-wide building management systems that can provide further clarity on utility consumption.

Such a system can remotely govern space occupancy, dynamic temperature regulation and air quality from a single platform. The latter of these also affects the health and productivity of those within. Thus, intelligent air quality management can represent a twofold investment.

EIC understands the potential of informed utility management, hence why it provides all these services under a single banner.

Whether it be by supporting data collation with expert metering guidance or exploiting the discoveries that an audit yields with a single-platform building management system, EIC can provide the technical expertise needed for enterprises to maximise the benefit of an energy audit.

 

The end of fixed term energy contracts?

EIC expands on recent comments from industry professionals concerning the viability of fixed term energy contracts in an uncertain future.

The floodgates open

The impact of COVID-19 has been felt at all levels of commerce, whether it be the radical transition to remote working or exposing the fragility of the fossil fuel sector.

Many organisations have recognised the opportunity that remote communications technology like Zoom and Skype have presented. Building costs account for a huge portion of the average firms outgoings and by reducing the need for space, these costs can shrink as well.

‘The new normal’ it seems could be a boon for all businesses in terms of operation costs, not to mention time saved for their employees. However, as with any paradigm shift, this transition has a great deal of uncertainty attached to it.

A major challenge facing energy suppliers will be in predicting consumption patterns as more people start to work from home. Unpredictable fluctuation will make it more difficult for suppliers to mitigate risk on fixed term contracts. As a result, they will become greatly exposed to imbalance charges and ‘Take-or-pay’ penalties embedded in most standard fixed contracts.

Fixed vs flexible contracts

As a means to protect against these volatile shifts in the country’s energy demand, energy suppliers will increase the price of fixed energy contracts. Doing so will protect against uncertain consumption patterns. Suppliers may also begin to leverage the terms within those contracts to the cost of the firms they are supplying.

Chris Hurcombe, CEO of Catalyst Commercial Services, believes fixed-price contracts may ultimately disappear as suppliers struggle to predict consumption patterns and attempt to insulate themselves from risk.

Post-Covid, there are too many unknowns for suppliers to price them accurately, so they are doing everything possible to de-risk contracts. Credit requirements are going up and some suppliers are not pricing for certain industries without an upfront deposit or a significant price premium…”

-Chris Hurcombe, CEO of Catalyst Commercial Services

Currently, fixed-price contracts levy a 10% price premium compared to their flexible counterparts. Additionally, Hurcombe has predicted a 15-17% rise in 2021,  continuing to 20% the following year.

Non-commodity costs, expected to climb in the near future, now represent the lion’s share of energy bills. As such, they represent the largest risk factor for end-users/client procurement budgets. These ‘fixed’ contracts, which allow suppliers to pass through additional energy charges, may hold a costly surprise for the firms taking part.

Help on the inside

Fortunately, flexible contracts, which EIC specialises in procuring, offer means to reduce or avoid some of these charges. They also afford adaptability in a changing commercial landscape. As volume consumption forecast becomes difficult and budget certainty key for the survival of companies, flexibility will become crucial.

The UK commercial and industrial sectors consume 185TWh annually, approximately £27bn worth, so the potential savings here are gargantuan. Savings of such magnitude can’t be ignored in an economy approaching its deepest recession since 2008’s financial-crisis.

EIC can secure you a flexible energy contract to take advantage of these savings. The key markers that EIC looks for when engaging suppliers include contract features and functionality, transparency around price fixing mechanism and competitiveness of the supplier’s account management fee.

Using these criteria means EIC can effectively guide your market position despite the fluctuations that a post-COVID future promises.

Existing EIC clients were collectively under budget to the tune of £65.7m between 2014 and 2018 for electricity and gas. One pharmaceutical client enjoyed 78% in annual savings over a 36 month period.

Further information on how to recruit EIC’s expertise into your negotiations can be found at the EIC solutions page.

 

EPBD: What you need to know

EIC unpacks Energy Performance of Buildings Directive (EPBD), it’s origins, purpose and how firms can make sure they are compliant.

The Kyoto Protocol

Two years after the 1992 UNFCCC (United Nations Framework Convention on Climate Change), the Kyoto Protocol emerged as an extension to the conventions primary treaty.

The UNFCCC’s objective is the following:

“Stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”

The extension took effect in 1997 and was as much political as it was scientific, viewing the climate crisis from a purely mathematical perspective. The consensus was that industrially developed nations were far greater contributors to climate change than rural and agricultural ones.

CO2 emissions would not be divided equally between the committed nations but rather based on their industrial activity. Subsequently, the EU and its member states committed to binding emission reduction targets which remain in effect today.

Following Kyoto, the EU established EPBD in January 2003 to ensure sufficient CO2 reductions from European buildings. The primary objective being to incentivise widespread improvement of their energy efficiency. The beauty of this that its criteria apply more to industrially developed nations due to their carbon intensity.

What legislative requirements are covered by EPBD?

The UK governments interpretation of embedding EPBD, recognises 3 streams of certification, required by both private and public sectors:

  • DECs (Display Energy Certificates) – required by publicly owned or funded buildings on an annual basis
  • TM44 / Air Conditioning Inspections – required for all buildings with installed comfort cooling
  • EPCs (Energy Performance Certificates) – required for both domestic and non-domestic new builds, majorly refurbished, sold or let out

The certificates are valid for 10 years from issue. EPCs underpin the MEES standard, whereby a building cannot be sold or let with an energy rating below E.

Building better 

As lockdown restrictions ease, and the ‘Build Back Better’ initiative gains momentum, compliance with EPBD will only become more relevant.

The most recent recast of EPBD, in 2010, focuses on new builds and major renovations thereby adopting a long term view of the situation.

EPBD also protects consumers, it requires disclosure of efficiency measures within a property to buyers, to inform them of running costs.

The requirement led to the widespread introduction of Energy Performance Certificates (EPC), one of the major successes of EPBD to date. First introduced in 2007, the UK national database now contains energy performance information on a staggering 40% of homes.

Last year marked the EPBD deadline for all member states to have NZEBs – or Nearly Zero Energy Buildings. The criteria for an NZEB is simply that it have a very high energy performance, made possible by quality insulation and on-site renewable generation.

Since Zero Carbon Homes was scrapped in 2016, EPBD is one of the few legislations that targets the energy performance of buildings.

The fervour in reaching net zero means that this legislation is here to stay and so firms should be asking how they could ensure they are taking part.

Upgrading for EPBD

Improving the energy performance of a structure needn’t be a complex process, however it must be an informed one.

EIC’s approach to structural efficiency is twofold, assessing pre-existing assets using integrated metering and monitoring technology. Next, EIC adopts an end-to-end approach, carrying out initial certification, devising and implementing improvements. Finally undertaking a certificate review to demonstrate progress.

Depending on site limitations, EIC can consult on the installation of on-site generation, with a particular focus on solar generation. Thereby lessening a structure’s energy consumption, lowering your utility bills and improving its overall energy profile. Full details of these services, as well as testimonials from past clients, can be found on the EIC website.

Private investment, public gain: Green investment after lockdown

EIC discusses the Northvolt gigafactory, and how private funding is now flooding into green investment and sustainability projects.

Recharging capital

It began with grassroots environmentalism, then government mandate and finally, major financial institutions have started supporting a green future in earnest. Support in the form of loans and bonds for sustainable economic development and innovation, specifically solar storage options.

One such investment occurred last Thursday as the European Investment Bank (EIB) issued a €350 million loan to Northvolt for its lithium battery plant.

The site is based in Northern Sweden, and is intended to produce the most environmentally-friendly battery storage packs to date. Using 100% renewable energy and locally-sourced materials, it will soften characteristically high environmental cost of the Lithium-ion batteries it produces.

The cells will be used mainly in cars, which are responsible for 12% of the EU’s current carbon footprint.

Northvolt has already secured a €2bn supply contract with BMW and Volkswagen is interested in collaborating on a similar factory in Germany. The latter of these two is no surprise after VW unveiled plans to convert its Emden production plant to electric vehicle production.

Lofty ambitions

The gigafactory will have an initial production capacity of 16 GWh per year and be the first of its kind.

Both the investor and supplier share similarly ambitious intentions moving forward as well. Northvolt plans to scale capacity to 40GWh annually while, back in May, EIB stated its intention to increase green investment financing to over €1bn by the end of the year.

China still dominates the solar battery market of course, producing more than five times that amount in 2019 alone. However Northvolt and EIB have just set an important precedent and other banks are now joining the green investment fray.

“I believe that EIB financing support for Northvolt has been a textbook example of how our financial and technical due diligence can help crowd in private investors to visionary projects,”

-Andrew McDowell, VP EIB

The COVID-19 lockdown has wrought chaos in several energy markets, most notably West Texas Intermediate – which went negative for the first time in April.

Projections show global growth shrinking to -3% after such dramatic losses in this market, as well as many others. Fortunately, the immediate crisis of COVID-19 has not blinkered business and political leaders to the looming threat of climate change.

Despite these losses, April saw a 272% increase of ESG (environmental, social, governance) bonds compared to April last year.

Green investment rush

Finally, investment in green infrastructure has become vogue among Europe’s financiers and firms should take notice. Last week Sadiq Khan promised £1.5bn to upgrade London’s water and gas networks and prepare for more electric vehicle use.

 

Beyond our shores, Danish investment bank, Saxo, is already making predictions about renewable technology taking over the global market.

“Governments will increase investments and subsidies for ‘green’ industries, starting a new mega trend in equity markets… We believe that these green stocks could, over time, become some of the world’s most valuable companies”

­– Peter Garnry, Saxo Bank Head of Equity Strategy

Renewable technology rewards boldness and expediency with huge ROI over time. However the endorsement of institutions like BlackRock and EIB helps reduce risk profiles, making it more attractive to investors.

EIC have championed firms renewable interests for over 40 years, buying and managing approximately 12TWh of energy each year.

The EIC sustainability offering provides carbon compliance, utility management and procurement advice. Combining this expertise under one banner, you and your investors will have all your bases covered when outfitting your firm for a low carbon future.

 

 

 

IETA’s net zero plan

EIC breaks down the IETA’s proposed ideas to help guide Europe towards net zero 2050, specifically the role cap and trade practices may play and why we must raise ambitions.

Rowing together

Last month the International Emissions Trading Association (IETA) announced its 2020s forecast for the price of carbon emissions, expected to rise to  €32 per CO2 tonne equivalent.

The IETA, in a report published last week, also outlined several ways in which international carbon trading, spurred by the increased price, could aid the fight against climate change.

The report outlined that some countries and firms were better equipped than others to reduce and replace carbon-intensive practices. Infrastructure, resources and trade exports are among the variables that can impede or hasten an organisations ability to stay within allotted carbon allowances while remaining soluble.

The trading of such allowances frees individual states and firms up to offset one another’s emissions in order to achieve the collective goal of limiting global temperature rise.

Moreover, it is effective; the European Union’s Emissions Trading System (EUETS) reported a drop of 29% in emissions from stationary structures when comparing 2018 to 2005, thanks largely to such ‘cap and trade’ schemes.

Cap and trade is not a novel concept, it has been suggested as a market-led solution to polluting industry for years. During his presidency, Barack Obama met with a lot of criticism for introducing a bill in support of such schemes with pundits calling it a “sledgehammer to freedom”.

The concern was not unjustified since it was predicted that Carbon intensive industry would simply be undercut by foreign interests able to offer more competitive energy rates to consumers.

However with international cooperation now being actively encouraged, the attraction and probability of price gouging between domestic and international firms is likely to reduce.

The price is right

Alongside the proposed price rise has emerged a surge of concern that, while ambitious, the UK will fall behind on its own national targets unless an even higher charge is established.

The IETA’s forecast would mean an increase on the €27 price that was in effect from June 2018-19 however, think-tank Carbon Tracker believes this would still fall short of the targets stipulated in the UK’s Green New Deal.

A report released by the Zero Carbon Commission has estimated that the IETA’s price would need to be increased by almost 100% to €60 by 2025 to stay within established carbon budgets.

“We need to introduce a stronger, more consistent carbon price signal across more sectors of the economy if we want to accelerate the transition to a low-carbon economy.”

Sam Fankhauser

Assuming that Fankhauser’s perspective is adopted in the UK, carbon allowance trading promises to become a lucrative venture for firms that are able to significantly reduce their carbon emissions ahead of time. Any shortfall between emissions and allowance could be traded with more carbon intensive firms, thereby effectively doubling the value of carbon emissions saved.

Intelligent utility management, on-site generation and smart procurement are all methods to increase the gap between emissions and allowance and, subsequently, its potential value in cap and trade. EIC offers all of these services as well as over forty years of direct experience in integrating and applying them to the benefit of its clients.

COP26’s race to zero begins

EIC highlights the key points made in COP26 President Alok Sharma’s speech, which symbolised the beginning of the organisations ‘Race to Zero’ campaign, and how business leaders can take a poll position despite the starting gun having already been fired.

Mapping the future

News that the UK will postpone its hosting of the UN climate change conference (COP26) was not unexpected, given the necessity for social distancing that COVID-19 has imposed, however it did raise concerns over the UK’s determination to enact a green recovery post-lockdown.

While the UK track record may, in part, justify some of these concerns, individual safety is not the only benefit of such a delay to talks, for one the nations taking part will need a clear idea of the state of their respective economies once lockdown ends before committing to new policy. 

And from a psychological perspective it might be argued that due to the all-consuming nature of the pandemic when it comes to public and government attention, the conference would not receive the attention necessary if it went ahead this year.

How far we’ve come

Despite the conference now being slated for Q4 2021 (-12 November), Alok Sharma gave a speech last Friday that reasserted the UK’s ambitions and responsibilities with regards to the 2050 net zero target and how the race to zero was already hastening its completion.

The UK, in collaboration with Chile and the U.N., are already leaders of the Climate Ambition Alliance – representing over half of global GDP – however Sharma insisted in his speech that “…we must go further”.

Sharma outlined some of the UK’s major achievements in reducing carbon emissions in the last thirty years:

  • Since 1990 the UK economy has grown by 75% while simultaneously reducing carbon emissions by 43%
  • In the same time, the UK has two offshore wind turbines able to power 2,000 homes, as of 2020 the UK is leading nation for offshore wind capacity
  • Globally, the cost of solar and wind power have dropped by 85% and 49% respectively
  • Over two thirds of the worlds nations can now generate renewable energy cheaper than coal

While details of the path forward remain scant – not surprising given the reasons for postponement – Sharma made it clear that liberating capital to fund green initiatives and widespread support for electric vehicles would be crucial to the UNFCCC’s success.

Approximately 1,000 business leaders, representing revenue totalling in excess £3.5tn have committed to the scheme including British motor giant Rolls Royce. According to the United Nations Framework Convention on Climate Change UNFCCC, around 75% of these businesses have already developed strategies and targets aligned with the 2050 target.

Dr. Alison Doig, international lead at the ECIU (Energy & Climate Intelligence Unit) recently commented on the danger of complacency in the opening stages of such a race. 

“This is not, however, about pushing climate action to some date in the future; no entity can reach net-zero in 2050 without starting now… participants will have to present delivery plans, including setting interim targets for the next decade, by the time COP26 opens in Glasgow next year.”

Clean energy was the first element of the British economy that Sharma cited when referring to the need for green growth after lockdown, making it a pressing issue for business leaders looking to get a head start on net zero. EIC provides comprehensive  support and advice to businesses in the procurement, management and generation of alternative energy sources. Each service forms an element of the robust energy management service that EIC offers.

 

 

 

 

 

 

EIC’s Utility Belt: Tips for more effective utility management

EIC outlines its best advice for intelligent energy management, minor changes that can yield significant savings and the importance of consistency in establishing new workplace cultures.

Technology vs culture 

The majority of your utility belt will be focused on the technology that you are currently using or could utilise in future however there is also a short section on the culture within your business and how that can factor into your success.

Heating and Ventilation 

Comfortable ambient temperature has become something of an assumption, commercially speaking, however the technology behind it often remains unexplored except to establish its basic controls for the user. Given that air conditioning alone can account for up to 30% of a site’s energy consumption, this is a significant oversight that, sadly can be solved very simply.

Sealing off or switching on 

A common method of controlling indoor temperatures is by sealing buildings, preventing windows being left open, however this can actually exacerbate the overall costs trying to be mitigated. It means air conditioning will be working overtime during hotter periods but also that air circulation may take a dip, meaning higher concentrations of CO2 and dampened performance from staff as a result.

IoT connectivity across sites can use occupancy monitoring and responsive temperature and air quality control to mitigate these issues. The provision of real-time data streams means that you can control individual spaces across large sites, maintaining utility usages that are responsive to demand and need.

Casual is smart 

Enstating a casual dress code during acutely hot or cold weather conditions means that staff will be able to offset their own demand on heating or cooling, not to mention be more comfortable in their work. 

Dig for victory

Planting trees is also a relatively cheap and environmentally friendly way to offset heating costs, since they provide shade and fresh oxygen as well as absorbing latent humidity in the air.

Lighting 

Intelligent lighting control can save 30-50% on energy costs automating this utility according to occupancy and respective demand means that you will not have spaces unnecessarily drawing power that isn’t being utilised. 

Let the sunshine in 

Not always an option depending on how sites are initially designed, however by using automated lighting, you can schedule lights to power down during daylight hours and reactivate once night falls. 

Using what you have 

The installation of LED bulbs for better efficiency and a longer lifespan can be an added boost to light use efficiency without being disruptive to pre-installed equipment, motion sensors are another low-impact option that help ensure that light is never wasted.

Professional culture 

As social creatures, culture is effectively the software that our communities run on, understanding this means that you can leverage your professional culture to become more energy efficient with a minimum of cost.

Empowering your team 

The use of environmental posters can help remind team members that their actions have weight in something larger than themselves. Small adjustments like the use of power strips also make it easier for them to adopt the positive habits that will be the foundation of your new professional culture. 

Communicate that computers should be shut down at the end of the day rather than left in standby, especially before the weekend. It has been estimated that a company with 200 PCs could save £12,000 annually this way. 

Breaking ranks 

2020 has demonstrated many things, among them our ability to work remotely and effectively and how doing so can help foster trust between managers and staff members. Encouraging this way of business means you can reduce or re-purpose the amount you are spending on office space and its attached utility costs. The same can be said of meetings that might’ve taken place on-site, by using video technology to bridge these physical gaps you reduce the occupancy on your own sites and the utility usage along with it.

Measure for measure 

Meters and sub-meters are essential tools in understanding the energy needs of a site as well as what areas have the highest concentration of usage. Armed with this information you are better equipped to make policy decisions pertaining to both technology and culture within your utility management. The Carbon Trust has found that a site meter can save 10% in energy costs while sub-metres, which allow you to pinpoint areas where demand is highest, can offer a further saving of 30%.

Going the extra mile

There are a number of additional features that can be added to the design of many sites to both off-set and reduce utility costs including on-site solar generation & storage, combined heat and power and demand side response schemes.

EIC can create a comprehensive and all-inclusive package for your business that oversees all aspects of utility management from metering & monitoring to IoT empowered devices that keep you connected to site data 24/7.

Open architecture technology affords access to all your vital business systems, meaning EIC can communicate with, control and report on any aspect of any site including heating, lighting and ventilation. Our services page contains full details of our offerings.

 

 

 

 

 

Alone, together: Mental health during lockdown

EIC looks back on the recent Mental Health Awareness Week UK, this year’s theme of kindness and some of the stories of kindness that have emerged from the energy sector since lockdown began.

Kindness to all

The theme of kindness could not have been more appropriate for this year’s Mental Health Week UK, with so many struggling under the emotional, financial and medical burdens of COVID-19 and the subsequent lockdown.

Indeed, kindness, solidarity and generosity are things that have been in great demand as a result of the widespread concerns wrought by coronavirus. Despite the added pressure felt simultaneously by the commercial energy sector, it’s proponents have responded with a magnanimity seldom anticipated by their customers.

Orsted

Danish renewables supplier, Orsted, has promised more than £165,000 to various health and charity organisations across the UK to help support them through the crisis, beneficiaries include Guy and St. Thomas’ Hospital and Liverpool University Hospitals NHS Foundation Trust. Duncan Clark, the supplier’s UK region head, impressed the importance of solidarity between companies and their customers:

“Across the UK, the current situation is having a profound effect on families and communities.. It is at times like these that we must come together to do what we can to support each other.”

Duncan Clark, Orsted

British gas  

Big six supplier British Gas stated their allegiance to customer welfare early on in the lockdown by announcing that vulnerable customers would be issued with 2 weeks of discretionary credit for electricity. The support will be pre-loaded onto keys or cards while gas customers will receive £5 credit, British Gas is also offering a remote version of the same service for those customers with smart meters.

Emergency measures 

Emergency credit limit for gas and electricity has been extended across the board by many major suppliers in the UK,  with E.ON raising the limit tenfold from £5 to £50 and nPower raising emergency credit limits from £7 to £45. 

Hands across the oceans

The trend of solidarity hasn’t stopped in the UK, energy companies across Europe are taking up the cause of customer support during the challenges of COVID-19. Italy was infamous for being one of the worst affected European countries and taken as an omen to be heeded by other EU states, domestic energy giant ENEL has answered with vigour. The supplier has donated €23m to support Italian healthcare professionals by funding hospitals, beds and machinery and president Patrizia Grieco framed this move as an act of duty from ENEL.  

“We are an Italian multinational with strong ties with the territory. It’s natural but also a duty to aid the territories where we operate and the communities we work with every day.”

Meanwhile in France, multinational ENGIE, has also contributed to Italy’s fight against the virus by providing free electricity and technical assistance on the construction of new medical units. 

 

 

A kinder world

The primary beneficiary of the lockdown measures however, might be an unexpected one, with the slowing of economic activity and the subsequent drop in emissions, the planet is receiving a long overdue dose of kindness from our entire species.

COVID-19 may have given us an opportunity to reflect on our current practices as well as a vision of what the world could look like with better, greener behaviour from us. 

EIC are champions of sustainable business practices through an end-to-end approach that can support you from initial procurement of your utilities, through to maximising their efficiency with IoT in order to faster deliver a sustainable commercial culture.

The strides EIC is taking to help the UK build a green commercial sector and reach climate targets are myriad and you can find out how to engage with them on our website.