The new energy consumer - Shifting expectations - Also this issue: Energy and Utilities Alliance
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
I S S U E 1 9 W I N T E R 1 8 / 1 9 The new energy consumer Shifting expectations Also this issue: • Events round-up • Hydrogen for Heat • The first MEHNA News www.eua.org.uk
W E L C O M E Welcome T he Department for Business, Energy & Industrial Strategy is exploring low carbon technologies to support heat decarbonisation. This issue we update on the Hy4Heat project which is looking at whether replacing natural gas with hydrogen for domestic heating and cooking is feasible Events and could provide a plausible pathway to help meet decarbonisation targets. You can also read about EUA’s Second Low Carbon Gas Consultative Forum which focused on UK hydrogen projects. Our Winter seminar, Gas 2018, examined the future of heat, identifying that over the coming years the energy sector will go through a huge period of transition and disruption. However as the event report concludes, it was clear from presentations on the day that gas is expected to play a vital role in the drive towards a decarbonised energy future. A new division of EUA, Manufacturers of Equipment of Heat Networks Association (MEHNA) has been established, specifically to support and promote best practice in the design and operation of heat networks. The group gives a shared voice for the heat networks sector and the move has been welcomed by BEIS, with the group already working with the Heat Network Delivery Unit and Metering and Billing. We look forward to reporting more on the development of this group in forthcoming issues. The main feature this issue looks at a series of consumer research being carried out by consultancy Accenture. Their New Energy Consumer research looks at emerging trends with a view to identifying new opportunities and challenges for the marketplace. They suggest that as much as changes in the sector are being driven by rapid energy transition and decarbonisation, consumers experience in other sectors such as retail, travel and media is impacting just as significantly. Consumer attitudes are evolving and their approach to energy ICOM is changing because of new tools at their disposal. It is an interesting angle and certainly has long reaching implications for the large energy suppliers and the energy sector as a whole. Our Leading Voice this issue is Liv Hovem, CEO of DNV GL - Oil & Gas. Their recent March 7 AMPS Conference Energy Transition Outlook shows major implications for all industries and she shares some of the key emerging trends and how this will impact the gas industry. One Great George Street, London Hope you enjoy this issue. Mar 21 HHIC Annual Lunch Caroline Haine, The Brewery, London Editor, OUTPUT Regulars May 15 EUA & IGEM Gas Industry Awards Contents 4 Utility Networks News Hilton Park Lane, London HHIC News 6 Hydrogen for Heat June 4 ICOM Annual Lunch Royal Air Force Club, London EUA President Elaine Lancaster Features 9 HWA News (Groupe Atlantic - UK & ROI Division) Events Round-up June tbc Utility Connections EUA Vice President/Treasurer Gas 2018 10 ICOM News Helen Bray (SGN) Midlands Chief Executive Mike Foster 15 11 NGVN News w/c Sep 9 Smart Metering Update HHIC Director Stewart Clements 16 12 President’s Column Midlands ICOM Director Ross Anderson The new energy w/c Nov 4 Gas 2019 …………………......……...…........ consumer 13 MEHNA News Editor/enquiries Shifting expectations Caroline Haine caroline@eua.org.uk Leading Voice For information on attending, speaking, sponsoring or Energy and Utilities Alliance (EUA) 20 Liv Hovem CEO of DNV GL – Oil & Gas Camden House, Warwick Road exhibiting at any of the above events, please contact: Natalie Burrows e:natalie@eua.org.uk or t:01926 513741 Kenilworth, Warwickshire CV8 1TH 23 Member List A company limited by guarantee and registered in England. Company Number: 10461234 2 3 Design and Publishing: www.mhgraphics.net
U T I L I T Y N E T W O R K S N E W S Utility gineering & Equi pm Smart Terry Jefferson joins the update Utility Networks Team n en Networks Network E E t Gr UA welcomed Terry Jefferson to the team in News Terry Jefferson, September. Terry takes on the role of Technical Services Manager for the Metering oup Technology, Metering Services and Smart g o Technical Services Manager Connected Homes Groups. in I t is encouraging to report that the Smart Metering Programme for SMETS2 really Terry has been in the energy and utility industry for all of his career, starting life as a Gas Engineer with ‘The Gas ur Board’ and continued with many diverse roles including Shap is starting to move forward Metering Services, UAT Test Manager to Applications with reasonable volumes of devices NEEG being installed across the country (latest Support Manager, Service Delivery Manager for Gas Distribution and Test future Assurance Manager for Gas Distributions Front Office Replacement programme for figures from BEIS stand at over 250,000). National Grid. After National Grid, he worked on the Smart Programme for Npower. The end date for SMETS1 and Advanced Meter installations has now been confirmed via BEIS. For credit meters this Hy4Heat Work Package 10 – ended on the 5 Dec 2018 and for prepayment it will be the 15 March 2019. Hydrogen Meters The DCC has also uplifted their systems Terry attended the launch meeting of Hy4Heat WP10 in December 2018. on to Release 2 in preparation for Dual Band Comms hubs (868 GHz). Hy4heat is a programme being carried out by the Department for Business, Energy Peter Day, NEEG Manager & Industrial Strategy (BEIS) to explore whether replacing natural gas (methane) with Over the past couple of months EUA has hydrogen for domestic heating and cooking is feasible and could be part of a been working hard to expand the plausible potential pathway to help meet heat decarbonisation targets. Work influence and coverage of its Metering Package 10 requires safe and functional hydrogen meters to be designed and he NEEG November Caroline Ayres, Director of the British whole systems, innovation and Group, by gaining seats within the SEC delivered, providing a solution for the safe and accurate measurement and billing T meeting took place in November and was very kindly hosted by member Plastics Federation (BPF) shared her thoughts on product specifications, skills and knowledge. decarbonisation, supported by good member company input. At the time of writing, we are responding to the specific Panels Testing Advisory Group (TAG) and the DCCs Testing Design and Execution Group (TDEG). With ongoing of hydrogen gas delivery. See more on Hy4Heat overleaf. BEIS want to develop innovation partnerships with Meter Manufactures which will allow the hydrogen capable meter development to progress. The programme company ControlPoint at their (GD-2) methodology consultation which representation on SEC Mods Groups, IMF, Les Thomas, Utilities Senior Assessor, TBDG, GBCS/TSIRS, 868 and SMOG, it is a issued ITT’s in January 2019 with a date of March/April 2020 to utilise the meter in headquarters in Chesterfield. closes in March. Following this, a decision Lloyd's Register gave an insight to PAS really busy time for the Group. initial trials and subsequently move across to community trials in 2021. The will be made in May 2019 - leading to a 128: Specification for underground utility, development of the meter will most likely follow a 2 phased approach - a solution Members heard from a variety of key formal submission of GDN’s business verification and location. In December 2018, the Joint Metering design followed by development of the meter. EUA will monitor all activity of this industry speakers on a range of topics plans to Ofgem in Q4 2019. Future plans Technical and Metering Services Members work package and report back to the group. and themes of interest to the group: For 2019, we are looking to refresh EUA’s Meeting took place. This was an excellent Economic Report with content driven by session with agenda items including the Tony Nixon, Head of Gas Transmission, usual review and discussion (sharing of Regulation at National Grid provided an interactive session on ‘Shaping the Gas At the February meeting, NEEG members will hear from tRIIO’s Director of member company input, reflecting the different areas they operate in. If there’s experiences) of the current position of the Smart Metering programme, an update Select Transmission System’. Operations who will provide an update on tRIIOs delivery of the 8 year contract which anything you would like to see included which may be useful to your business, on the SMDA (Smart Metering Device Assurance), discussions from a number of Committee David Scarth, Project Director – Routewide Logistics Utilities & Transport, it delivers for Cadent, as one of its strategic partners. April 2019 will see tRIIO enter into please let us know. programme governance meetings, contribution and representation from inquiry into year seven of the contract - it will be an We will also be looking to develop a Phase 1, HS2 Ltd, discussed the context utilities sit in within the wider HS2 world. opportunity to look back as well as technical/standards dimension, Steve Thun, DCC, and developments around Hy4Heat (see note right) gas storage forwards. There will also be a sector update particularly representation on IGEM David Gill, NGN Head of Customer committees and we’re identifying from the HSE, briefings from IGEM on n October 2018, Government held a Select Committee Inquiry into gas storage. I Our meeting calendar at Camden House Energy Solutions spoke about whole ‘contributing to standards’ and DNV GL on member companies who might like to Roddy Monroe, Independent Chair, joined the panel representing the Gas for 2019 is below: contribute to committees, working groups energy systems and working together. Human Organisation Technology (HOT). 19 Feb 2019 (Review IMF Plan, SMDA Storage Operators Group (GSOG), one of four key witnesses in attendance. and panels. If you would like to be update, Smart Next Steps), EUA along with GSOG members have been lobbying for over a year for this Stephen Wielebski, Home Builders As part of our ongoing dialogue with involved in some capacity or require 21 May 2019 inquiry to take place and it was an excellent result for all concerned. Roddy has had follow Federation, provided house building Ofgem around RIIO-2, NEEG contributed further details, please contact 17 Sept 2019 up meetings with members of the Committee since the inquiry took place and it is hoped policy and utility connections updates. to a number of Ofgem GD-2 workshops on Peter@eua.org.uk in the first instance. 10 Dec 2019 that a report will come out of this which the GSOG group will have an input into it. 4 5
H H I C N E W S Hydrogen for Heat... HHIC Work Packages 7 to 9 With the safety of consumers and installers News a priority, a co-ordination group will enable gas distribution network operators to agree an approach for WP7 (safety ? testing) and aligning ‘Hy4Heat’ with other H hydrogen programmes and initiatives. WP8 will see the demonstration of the prototype domestic hydrogen appliances which have been developed in WP4. WP9 he viability of hydrogen as a testing and certification committee to is the planning and preparation for a T methane. Hydrogen has very different Hy4Heat project board, industry experts fuel for the future has become provide guidance on hydrogen standards. potential community trial. combustion characteristics to from the Health & Safety Laboratory, DNV a hot topic for the plumbing methane and so current appliances GL, and the IGEM Technical Coordinating In other words: the industry is readying for and heating industry. change. Work Package 10 are unsuitable for use with hydrogen. and Gas Utilisation committees. WP10 requires safe and functional Steve Sutton, Technical Manager, looks at Work Package 3 Work Package 4 hydrogen meters to be designed and The Hy4Heat programme will seek to the work being carried out by the Work Package 2 WP3 focuses on certification for domesticThe development of domestic hydrogen delivered, providing a solution for the safe provide the technical, performance, Department for Business, Energy & The Institution of Gas Engineers & hydrogen appliances. In 2018, a survey ofappliances is the core focus of WP4, as it and accurate measurement and billing of usability and safety evidence for Industrial Strategy (BEIS) who are Managers (IGEM) has been appointed by Notified Bodies and Test Laboratories looks to demonstrate the safe use of hydrogen gas delivery. The meters hydrogen use. exploring whether replacing natural gas BEIS to develop WP2. hydrogen as a fuel to provide heat and hot procured in WP10 will be used for the (methane) with hydrogen for domestic water in our homes. WP4, more formally WP8 trial. BEIS has appointed Arup as the heating and cooking is feasible and could “ programme manager who will known as the ‘Domestic Hydrogen Where next? be part of a plausible potential pathway to help meet heat decarbonisation targets. oversee the entire programme (Work Package 1) and will also be Decarbonising “ Clean fuels such as hydrogen and bioenergy could Appliance Development Innovation SBRI Competition’, is being carried out with the ultimate Hydrogen presents many opportunities to decarbonise heat and to the wider energy network. As outlined in the Government's Clean undertaking the work to be used for transport, industry, and aim of providing critical heat is arguably the to heat our homes and businesses. Growth Strategy, there are a range of low prepare and plan for a evidence of safety, emissions Innovative developments aside, the carbon heating technologies with community trial (Work and functionality of progression of hydrogen as a fuel of the potential to support heat decarbonisation. Package 9), if BEIS We need to test how they work in the hydrogen-fuelled products future rests on the success of the research BEIS is working with industry and other stakeholders to build understanding of the decides to do this. Arup is working with greatest challenge in existing gas network, whether they can fire industrial processes, and how they within domestic housing. Worth up to £9 million, the and development conducted in the industry. different approaches, to prepare for meeting UK climate technical and industry competition seeks to decisions in the first half of the next decade could be used in domestic appliances. encourage appliance A separate, Ofgem funded, programme specialists: Kiwa Gastec, about the long-term future of heat. Progressive Energy, Clean Growth Innovation Challenges - manufacturers to push researching the possibility of re-purposing Hydrogen gas as a replacement for Embers and Yo Energy. change targets Clean Growth Strategy forward the development of boilers (combi and the gas network ‘upstream of the gas meter' is currently underway. Ofgem has methane is just one of several routes that BEIS is considering to decarbonise heat. The main advantage of hydrogen is that it BEIS will appoint contractors to deliver the other work packages that all together make up the whole ” ” regular/system), cookers (stand- alone hobs, ovens with grills and integrated freestanding cookers) and fires. commissioned the Gas Distribution Network Operators (GDNOs) to research the technical and safety challenges of does not release carbon dioxide during programme. The Hy4Heat team will BEIS is also urging competitors to use using hydrogen in the gas distribution combustion, unlike methane and all oversee and manage all of these as part of reported that hydrogen appliances could development funds to produce innovative system which could ultimately result in a hydrocarbons. their main programme management role Working in close collaboration with leading be certified under the existing Gas domestic hydrogen appliances. UK hydrogen conversion strategy, making and the programme will run to March industry partners such as HHIC, IGEM will Appliance Regulation (GAR). In August a significant contribution towards the UK’s To support this exploration, Government 2021. look to develop functional gas standards 2018, the HHIC attended a stakeholder Work Packages 5 and 6 decarbonisation agenda. has allocated £25 million to a study called for hydrogen for use within the ‘Hy4Heat’ event that explored the development of Tenders have already been received for Hy4Heat – a range of inter-related ‘work- The programme is initially addressing two demonstration programme. IGEM will test standards for the certification of WP5 and WP6 which will see BEIS appoint Hydrogen use in vehicles is a major focus packages’ that will form a feasibility study key challenges with hydrogen; firstly, introduce three working groups that will appliances fuelled by hydrogen. These contractors to deliver comprehensive of research and development too. There to establish the parameters of employing demonstrating the safety case associated review areas such as DSEAR, materials, are independent standards that research reports on the feasibility of are many examples of hydrogen already hydrogen as a replacement for natural gas with using hydrogen in buildings and leakage rate, and ventilation; appliance appliances must meet to receive a “CE converting commercial sector appliances being successfully employed in cars, buses in heating our homes, commercial secondly, the need to have appliances location, fluing, installation and air supply. mark”. Additionally, the group discussed and industrial heat generation from natural and vans with much interest in hydrogen buildings and for use in appliances. that can burn hydrogen rather than The work will be peer reviewed by the the potential to establish an appliance gas to hydrogen. as an alternative transportation fuel. 6 7
H H I C N E W S HHIC ECO3 In tune, up to News Consultation HWA A step in the right direction News date, let the hot topics flow T here are many positives to be Government listened to the views of the taken from the recent ECO3 HHIC, and other key industry players, that it consultation, and it is is too early to insist all new installations encouraging that the ideas, carried out under the ECO3 header should reservations and be accredited by the Each Home Counts recommendations put forward by the review, especially since it is not yet up and heating industry have been considered and WA is constantly striving to H running; nor have the requirements been ECO3 water storage solutions. From dispelling The campaign, running both on and incorporated into parts of these plans. agreed. HHIC is relieved that the ECO3 provide quality, topical cylinder jargon to sizing a cylinder for offline reaffirmed the position that hot Stewart Clements, Director of the HHIC, scheme will not require Each Home Counts advice and information to individual household needs, this area of water storage is a modern choice for UK comments on the latest review. compliance until further support businesses and the website is constantly being reviewed home-owners, while highlighting the clarification is put in consumers of hot water to ensure there is the right information to many plus points of opting for a new HHIC’s foremost concern was that amends products. Let’s take a look at some of the make an informed choice. cylinder, such as, instant hot water from to the ECO scheme would result in greater place. It is how the Each Home Counts plan resources available. multiple outlets simultaneously. This is red tape for installers sitting alongside certainly should look, as far greater Within the ‘homeowner hub’ there is also especially key when people are in the prudent of harsh cuts to funding. There was much Government inclusion will be needed before it Website a frequently asked questions area, market to upgrade or replace their included in the forty-two-question to consult can even begin to be seen as an www.hotwater.org.uk containing questions and answers to existing hot water system, or are in the consultation, but encouragingly industry’s industry-led scheme. things like; “Does a new cylinder have to process of opting for a new build or views and reasoning fed into the changes the industry be fitted in the same place as the old renovation project. that will take the scheme through to 2022. further on one?” and “I am thinking of installing solar The minimising of red tape, more thermal panels at some point, but not flexible eligibility, recognition of oil straight away. Do I need a twin-coil HHIC had expressed concern usage in rural areas and changes to cylinder? Part of the about quality mark requirements supplier obligations, should make a clear and the proposed inclusion difference to delivering the ECO scheme Media consumer campaign within this consultation and ECO where it is needed most. included more generally. By bringing in Over the past the creation two years the additional red tape it was felt that of a series HWA has installers - who are already highly of useful What is ECO3? been turning accredited through other videos up the heat schemes - may be dissuaded which are with a hosted on the HWA YouTube channel As well as the usual ‘about us’ and consumer news sections, the website has a campaign, • Hot water storage in action: four dedicated ‘Resource’ section with aimed at bedroom property case study The Energy Company Obligation scheme (ECO) is a programme that delivers energy over 40 different resources available. educating • How do I choose the right hot water efficiency measures to low income and vulnerable households across Great Britain. Since From engineer guides to product consumers on the storage system? the scheme was launched in January 2013, 2.3 million energy efficiency measures bulletins on topics such as: advantages and abilities of the modern • Do I need to connect hot water storage • Guidance on the selection and day hot water cylinder. Despite the UK’s have been installed in approximately 1.8 million homes, helping to reduce energy to renewable energy sources? installation of storage cylinders for solar long standing love of storing towels and bills and making homes more energy efficient. The latest consultation on the scheme • Why should I consider a hot water thermal hot water systems. drying clothes in an airing cupboard, storage system? concluded last year and recommendations were taken forward in the Autumn. • Using unvented cylinders with solid many have been enticed away by the lure fuels of the cylinder free system. When you take into consideration how • Meeting current legislation much the average household depends The current ECO3 scheme runs until March 2022 and the Department for Business, • Heat pumps and hot water storage The consumer campaign is designed to on their hot water system, keeping from working under Energy Industrial Strategy (BEIS) received 239 responses to the consultation last year • Stored Hot Water Solutions in Heat raise awareness of the options available. homeowners and engineers up to speed the ECO; something which Networks 2018 The idea is to give homeowners the tools is essential. With HWA’s suite of from a variety of stakeholders ranging from large energy suppliers and trade would slow down the process of to talk knowledgeably to their installers information homeowners can make homeowners having measures associations to individuals with an interest in energy efficiency and fuel poverty. For customers there is information and to enable them to enjoy the benefits educated choices with the support of installed under ECO. available to help with decisions on hot of hot water storage. well-informed engineers. 8 9
I C O M N E W S N G V N E T W O R K N E W S ICOM NGV Household brands News Network News proving the gas concept n 2018 household brands such Priorities for I as Sainsbury’s, Hermes, TK Maxx and Ocado led the way in committing to running substantial numbers of their HGVs transforming heating on natural gas. The John Lewis Partnership thrust themselves to the forefront of the movement, purchasing a 50-strong gas fleet and committing, along with their sister Ross Anderson, Director ICOM company, Waitrose, to going diesel-free by 2028. The move is set to save more than 49,000 tonnes of CO2 annually, A recent document from the However, as capacity from renewable wider use of smaller heat networks equivalent to the carbon Department for Business, sources such as wind and solar increases, serving local buildings, so there will be a footprint of more than Energy and Industrial this will become less of a concern – at least growing demand for heat interface 6,000 UK households. Strategy (BEIS) provides an when the wind is blowing and the sun is units (HIUs) and metering systems. Many other companies insight into the Government’s shining. concerned about the thinking with regard to energy and carbon, In all cases, other than standalone public perception of and a useful reference for ICOM and other Because of a reduction in the average domestic installations we will also see diesel and wishing to EUA members. Ross Anderson, Director of carbon content of the power grid, electric space heating and hot water systems benefit from lower ICOM, provides an overview heating is receiving a lot of attention from served by a wider variety of heat transport costs are BEIS so ICOM members must be aware sources and this needs to be paralleled trialling gas vehicles with Entitled ‘Clean Growth – Transforming of this situation. This trend is reflected in by more sophisticated control than has a view to replacing their Heating’, the document reinforces the focus the latest version of the Standard historically been the case. diesel fleet. on decarbonisation of the UK’s energy Assessment Procedure (SAP 10) and is enables truck manufacturers to build scale and gas engines having less power than infrastructure, noting that heating remains also anticipated for the next version of the For example, there is great potential for Tighter regulations on diesel vehicles which reduce the costs of gas vehicle production. diesel. Feedback from recent trials is that the largest source of greenhouse gas Simplified Building Energy Model (SBEM). hybrid systems combining heat pumps produce toxic gases, harmful particulate the latest engines have overcome this emissions. It also identifies gas as the However, BEIS notes that widespread use with gas-fired condensing boilers. matter and carbon emissions in much larger Natural gas is a genuine alternative for haulage issue. Drivers also comment on the predominant source of heating. of electric heating is dependent on the However, these will only deliver the volumes than cleaner natural gas, has buoyed companies particularly now that major truck engines being much quieter and driving a “Whichever approaches are taken, the way development of new, and reinforcement required efficiencies if the control interest in natural gas vehicles. The manufacturers such as Iveco, Scania and Volvo gas engine vehicle is much less tiring. heating is supplied to nearly 24 million of existing infrastructure to generate, store system is able to manage the technology represents a significant proportion are manufacturing trucks with gas engines. Something rarely commented on but homes, businesses and industrial users and distribute low carbon electricity. performance of each of these of new HGV registrations (10 per cent of the reported widely is that truck drivers are connected to the gas grid will need to technologies to optimise overall 4×2 market) and is expected to continue to eat Transport strategies aim to achieve zero exposed to high levels of vehicle air change,” it notes. Alongside these aspirations is a desire to performance. up diesel’s long-held market share, particularly emissions but often the technologies aren’t pollution and gas provides a cleaner and make wider use of hydrogen and following the introduction of 6×2 units at the available or are impractical in day to day safer environment for their work. Trials are To that end, there is a predictable emphasis bioenergy. In relation to hydrogen there is At 136 pages long, the BEIS document back end of last year. operation. HGV’s are the hardest vehicles to demonstrating cost savings from gas of at on promoting low carbon heat still work to be done on the safety aspects covers these issues in much more detail decarbonise because of weight and space least £6,000 per vehicle per year after technologies such as heat pumps, biomass, of converting the gas grid, a task that will than is possible here, but the clear Government recognises that they must act and limitations, a fact recognised in the DFT’s deduction of the higher lease cost. biomethane and solar thermal, along with be comparable to the change from coal message is that there will be significant incentivise the take up of low carbon “Road to Zero”. Electric or hydrogen HGV’s are Applied across the HGV vehicle park this wider use of heat networks for the gas to natural gas in the 1960s and 70s. investment in areas such as heat gas HGVs. In November’s Budget the impractical and likely to remain so for the would save the industry £1bn per year! distribution of heat. The focus on heat networks, hydrogen and bioenergy. Chancellor announced an 8-year extension of foreseeable future. The only viable low carbon pumps is a concern, as most heat pumps Clearly ICOM members have a key role to The document is available on the ICOM its policy of lower fuel duties on cleaner fuels. alternative to diesel is natural gas and when The pace of change in the transport are currently driven by electricity generated play in helping the Government’s website and members affected by this This fixes the tax differential between natural used alongside zero-carbon biomethane, the industry is expected to continue in 2019, from highly inefficient gas and coal fired commitments to reducing greenhouse need to ensure they are well positioned gas and diesel and extends the commitment environmental advantages really stack up. with more suppliers seeking to make the power stations. gas emissions. We can expect to see to contribute to this transition. to 2032. It provides investment certainty and HGV drivers have previously commented on move to natural gas and biomethane. 10 11
P R E S I D E N T ’ S C O L U M N MEHNA NEWS A year in MEHNA A single voice for suppliers of heat President’s Column numbers EUA President, Dr. Elaine Lancaster looks at how EUA’s activities News network products add up to help shape future policy direction within the energy sector. Leeds District Scheme A s 2019 gets well underway, I world class manufacturing, research and thought it would be a good development and leading services industries. opportunity to reflect on the varied and excellent work EUA EUA’s commitment to bringing member undertook in 2018. companies together to solve industry issues and provide an enviable information source is How much do you know about EUA as an a major driving force behind our outputs. Last organisation and its workstreams? Are you year we ran 121 A aware of its size and breadth of new division of the EUA, member group representation over a wide range of policy Manufacturers of Equipment of meetings and areas? Do you know who your fellow EUA staff Heat Networks Association members are and what they do? Why not attended 189 (MEHNA) has been established flick to the back page to see the full list. It’s technical committee specifically to support and nice to know you are in good company! meetings and other panels promote best practice in the design and (such as operation of heat networks. Ross Anderson EUA works to shape future policy direction on APPG’s, Boards, explains. the overall system, including heating plant, ensuring that necessary changes are made behalf of members and the wider Working Groups, and Did you know that our member companies pipework, valves, heat interface units (HIUs) to the document. community. The longer term vision of Stakeholder groups) on employ approximately 252,200 people, and It is now well accepted that heat networks will and metering. Many of these products are EUA is that by 2025 we will have behalf of members, as if you include those indirectly employed, our play a key role in the UK’s carbon reduction supplied through members of divisions Another early success for MEHNA has been shaped the UK’s heat and well as holding sector accounts for one in every 40 people strategy. Indeed, in 2017 the Department for within the EUA, such as ICOM, HHIC, HWA productive dialogue with the Building transport decarbonisation over 200 meetings in the UK today. A key part of our strategy is Business, Energy and Industrial Strategy (BEIS) and UN. Engineering Services Association (BESA), policy, paying due with BEIS, other helping to realise the industry requirements regard to affordability for a qualified, capable and diverse noted: “Heat networks form an important part which publishes a test regime for HIUs. Government of our plan to reduce carbon and cut heating and security of supply workforce to meet the challenges of the For that reason it was decided last year, at the Following input from MEHNA the test departments, senior civil servants, whilst continually coming decades. In my role as EUA bills for customers (domestic and commercial). request of EUA members, to create a new regime has been modified to more closely MPs and policy makers. acting on President I will be focussing on skills issues, More recently BEIS has launched a £320 division that would give a shared voice for reflect the market and we hope to have members’ talking to members and asking them to million Heat Networks Investment Project heat networks - the Manufacturers of future involvement in BESA’s steering group These outputs saw success in: behalf. share ideas relating to their own recruitment (HNIP) which will offer grants and loans to both Equipment of Heat Networks Association and technical committee. • Securing the fuel duty differential rate for practices and the specific challenges they the public and private sectors in England and (MEHNA). This move has been welcomed by natural gas as a vehicle fuel to help are facing. It is crucial we widen the talent Wales, for networks serving two or more BEIS and MEHNA is already working with the Also challenging is the lack of standards in decarbonise UK HGV’s. pool in our industry through gender and buildings. Heat Network Delivery Unit and the metering some areas of the heat network system and As President of EUA, • Directly influencing new Boiler Plus diversity and I hope to be able to share the and billing departments of BEIS. MEHNA is working with the British Standards I have the privilege of presiding over legislation. results of my findings with you soon. Institution (BSI) to remedy this shortfall. As 325 member companies across eight • Contributing to Government’s Smart meter Gateshead District Energy Scheme The role of MEHNA is to represent the part of this, we have been instrumental in organisational divisions:- Utility Networks programme, around standards, testing and Finally, we all know the energy sector is product manufacturers in discussions on resurrecting a dormant BSI committee on (UN), Heating and Hotwater Industry Council codes of practice. facing a period of massive disruption. New regulations and standards with a view to heat exchangers and will be involved in (HHIC), Industrial and Commercial Energy • Helping Government recognise the technologies and demand-side response, ensuring heat networks are designed to writing a new standard for HIUs that will Association (ICOM), Hot Water Association importance of gas as part of the energy mix. combined with new market structures and (HWA), Manufacturers’ Association of • Raising the profile of the work being user platforms, are impacting the energy operate as efficiently as possible. As well as bring a major change in the design, Radiators and Convectors (MARC) British undertaken in the energy industry into sector as we know it. While this transition is addressing product design and operation, manufacture and operation of HIUs. Energy Efficiency Federation (BEEF) and hydrogen as a future fuel. opening up exciting possibilities, it won’t be MEHNA is working closely with the Manufacturers of Equipment in Heat • Helping Government understand the without its challenges and there is a Chartered Institution of Building Services The progress made already is a clear Networks Association (MEHNA). The current significance and implications of low carbon significant amount of uncertainty in the Engineers (CIBSE) and the Association for indication of the need for a single voice that divisions all work side by side supported by a gas - biogas, synthetic natural gas and strategic role envisioned for the future of Decentralised Energy (ADE). supports the products in this growing market common strategy but have quite different hydrogen – as a means to decarbonise UK gas. However, EUA firmly believes that gas and MEHNA has already attracted three new areas of focus. Across these divisions we have heating and transport. will play a vital role in the drive towards For example, CIBSE is reviewing its Code of members that were not formerly involved a wide range of members, from those • Raising business and consumer awareness decarbonisation and that it can support Practice for heat network design (CP1) and with the EUA. There is still much to do and involved in fuel supply to the end user, through publication of a series of guides and plausible pathways to a low carbon energy One challenge, however, is that heat networks MEHNA is involved in the review process by we will continue our work to represent covering all sectors of the economy, including other industry resources. system. use a number of different products to create compiling members’ comments and member’s views in this area. 12 13
MARC NEWS EUA EVENTS ROUND UP - GAS 2018 Quality We are extremely grateful to our event speakers, sponsors, DNV GL, Northern Gas 2018... there’s space for gas MARC assurance Gas Networks, Wales & West Utilities and Uniper and our exhibitors, ALH Systems, Bell Apparel, Pipeline Industries Guild. News is key for in the decarbonisation drive MARC he UK’s radiator actual output. T industry is Radiators sold in the UK have making a unified to conform and have outputs call for zero ITY AL verified to BS-EN442 the tolerance on European standard for QU companies who ✔ radiators. All radiator literature mislead customers on the power needs to display BS-EN442 E of their products. UA’s flagship seminar, Gas New technologies, like battery storage, CE compliance, which enables 2018, examined the future electric vehicles, and demand-side AS specifiers to show compliance SURA of gas in the UK, for heat, N response, combined with new market The Manufacturers Association of with the European construction Radiators and Convectors transport, and industry. The structures and user platforms, could products directive. day was spent looking at a (MARC), is committed to product change the face of the energy sector as we Other information presented included: satisfaction and consumer varied view of the next 50 years of gas and know it. The latest on Energy regulation. Ofgem’s BS-EN442 shows that the speakers came from across the industry. assurance and members have innovation incentive under RIIO-1 has led to stated output levels have been There are changes already taking place in pledged to raise standards and compliance, cost savings but things are going to get independently verified, but some products To highlight the sheer rate of change, the energy market:- Decarbonisation: through a series tougher and the next phase, RIIO-2, will be The use of hydrogen, both 100 per cent and are getting into delegates were reminded of what was new Government needs to reduce Green of initiatives. more consumer focused when it comes into blended, bio-methane, bio-SNG, bio-LPG, the country 50 years ago: House Gas emissions by 80 per cent by effect in June 2021. wind, solar, hybrid heat pumps incorporating without • preparations for decimalisation were 2050. Decentralisation: Energy generation MARC’s pledge a gas boiler and many other small solutions undergoing this being made and the new 5p & 10p coins is moving closer to the point of use. has been created Cuadrilla produced the first sample of Shale will all add up to the final result. process. were issued Digitalisation: New technology, devices to ensure gas in the UK on 2nd November. Therefore, • the North Sea gas conversion programme connected to the Internet and IoT driven industry wide In transport, buses and HGV vehicles are anybody buying started in Burton on Trent smart home technology is a key driver of compliance with Issues around changing the natural gas looking towards bio-methane and hydrogen, a radiator should • Concorde was preparing for its first flight change, transforming how customers the Construction specification in the GSMR could give the gas as electric does not provide a solution look out for the interact with energy. Sector convergence: Products industry problems due to the speed of change currently. Hydrogen powered trains are also British Standard Looking ahead to where the industry will be Fundamental changes in the market and Regulations, of the specification, the range of the new part of the mix. BS-EN442 in 50 years was much harder. One thing was new collaborations i.e. electric vehicles which apply to all specification and the problems of metering. accreditation on clear, energy is undergoing a revolution. (EVs) are bringing partnerships between products sold While energy transition is opening up packaging or on The way we use it, the way we control it, and car manufacturers and electricity suppliers. into the Of concern for industry is the existing housing exciting possibilities, it won’t be without its the product. the way we access it are all changing. construction stock. Government will have to help support challenges. There is a significant amount of If substandard The scale of the challenge facing the industry and incentivise households to help UK reduce uncertainty in the strategic role envisioned radiators are Speakers highlighted that over the coming energy industry requires a shift in including those emissions. for the future of gas and high levels of installed, years, the energy sector will go through a approach. Many speakers emphasised purchased uncertainty present a great challenge to customers lose period of massive disruption. that there are no silver bullets and no online. For the consumer it’s all about managing policy makers. However, this seminar out on warmth one route is the answer, that there will affordability. It is inevitable that costs will trickle cemented the view that gas will play a vital and efficiency be a combination of answers, which down to the consumer for all these changes. role in the drive towards decarbonisation MARC will be and end up are likely to continue to evolve. and can support plausible pathways to a low working across disappointed, The Cadent HyDeploy project to determine carbon energy system. the whole having generally the percentage of hydrogen that can be industry to paid over the injected into the grid, has obtained the Over 100 delegates joined EUA for Gas 2018 ensure that all companies’ marketing odds, based upon the stated outputs. That required exemption from HSE. at the National Space Centre in Leicester and materials and product performance data are cannot be acceptable in our industry. the day concluded with a private show in the correct. Tests conducted by MARC Bio-LPG will help protect the off-grid industry digital planetarium of ‘We Are Astronomers’, members on imported products have MARC will be launching a series of initiatives and the consumers who rely on oil or LPG to a 360° virtual trip into space, narrated by shown stated outputs up to 68% higher than to support the pledge later on this year. heat their homes. David Tennant. 14 15
FEATURE: THE NEW ENERGY CONSUMER The new energy consumer Shifting expectations nergy is one of life’s E The rise of innovative and The battle is already on to own the The acquisition allows British Gas to launch a and influential or adopting a simple, asset light, have high scalability, attract a lot of essentials. But the way it is ‘connected home’, with companies from the family of smart home products to bring effortless set-and-forget mindset. All the free publicity and use the shared economy produced, distributed and technology, entertainment and telecoms consumers innovative ways to help them disruptive business while, the digitisation of everything is (share goods and services facilitated by an consumed is undergoing sectors seeking to gain customer traction. reimagine how they live in their homes. models becoming a normal part of everyday life. online platform). fundamental change. There’s Google, Apple and Samsung have all made already been a significant reduction in the moves in this space. And while the Customer attitudes are evolving and their A growing number of consumers are filling This hyper-connectedness is creating a carbon content of the energy produced connected home market remains approach to energy is changing because of their homes with connected devices. world in which companies, consumers and and consumed, but according to the latest fragmented, opportunities are emerging in these new tools at their disposal and Kitchen appliances, thermostats, lights, everyday objects can digitally interact with report from the Intergovernmental Panel home energy management. For example, changing customer behaviour is a huge locks, phones and televisions are each other. Connected everything has on Climate Change (IPCC) published late British Gas acquired AlertMe, a developer challenge for energy companies. In the past, becoming smarter and more raised the bar with consumers who now last year, we face a stark future unless we of platforms for running smart home customers were relatively disengaged, only interconnected. In fact, almost all energy expect choice, control and convenience. redouble our efforts to decarbonise. devices which runs the Hive product, seeking to interact with their energy consumers now use some type of The characteristics of these innovative new allowing consumers to control their heating company when there was a problem. But connected device in their day-to-day lives. business models adopted by companies Decarbonising energy is not the only and hot water remotely. not anymore. With smart devices, consumers can such as Uber, Airbnb and Amazon are answer. Giving consumers more control choose between being highly informed heavily technology driven. They tend to be over their energy is also required. Technology can help by bringing the source of energy production closer to the Centralised Decentralised consumer, enabling self-generation and production prosumers storage of their own energy and creating smarter homes and businesses. Case study: The digital transformation by ENGIE Physically The shifting energy connected ecosystem to the grid Off-grid E NGIE (previously GDF Suez) opportunities ENGIE plans to invest €1.5 billion in new has an ambition of being a “ As part of our ambitious N businesses and digital technology. The D Technology is now eclipsing competition leader in energy transition. three-year transformation plan Group has set up its ENGIE Digital skills EW WORL as the biggest single transformational force Facing significant market to become a forerunner of the future energy centre to support its operational entities affecting the consumer’s relationship with energy. It is shifting customer expectations The Shifting transformation, ENGIE sought to review its retail operations and transform the world, we are making a big investment to digitise our company, redefine the customer and created ENGIE Tech as a development platform for an ecosystem of what to expect from companies. The WOR digital experience for its business and online experiences customers are becoming used to in areas such as Energy Flexibility in storage and residential customers. Its experience and set new rules of engagement in the industry. of partners and a facility for developing the business software to deliver its Predictable transformation includes reimagining the products and services. In customer D retailing, travel and media are setting a new norm. load Ecosystem demand response delivery of traditional commodity Digital is central to the products and services we relations ENGIE has developed a L services, such as selling gas and offer, a key driver of competitiveness, and a powerful L comprehensive package of online services O electricity. lever for changing our operating methods. D for its domestic customers, ranging from And from this, a more complex energy energy self-management to information, ecosystem is emerging with the Isabelle Kocher, relationship between the consumer and the way they manage their energy now Lifestyle It also includes designing new services to disrupt the market, challenge competitors and new entrants and, ultimately, position Chief Executive Officer, ENGIE. ” online sales and digital billing. More than 30 per cent of customers are using the ENGIE website to manage their own accounts. more fluid and far-reaching. Customers Energy connected ENGIE to move into new markets and have choices around generating, storing products energy regions. Among the possibilities: servicing home solutions in ways that delight Case Study taken from Accenture report ‘The and trading their own electricity as well as services the new era of electric and self-driving customers, and helping customers in their New Energy Consumer 2017 – New Paths to about energy management, efficiency, vehicles, connecting the coming wave of energy transition projects. Operating Agility’ automation, monitoring and control. 16 17
FEATURE: THE NEW ENERGY CONSUMER L O W C A R B O N C O N S U LTAT I V E F O R U M customer simply wants affordable warmth when it is needed. A new policy and regulatory landscape will be required for the new energy consumer, built around enabling them to benefit from the transition Low carbon gas The New examined at EUA forum and ensuring they are at the heart of the system and its policy framework. Lack of consumer action could become a central barrier to achieving a decentralised, decarbonised energy system. Energy Consumer While consumers will continue to evolve, these new characteristics will remain at the core of the preferences and behaviours of next- Shifting generation consumers. Successful energy providers will be those that understand how and why the new energy consumer requires much Hydrogen for a low carbon future was the focus of EUA’s second expectations more than the traditional utility service model. They will also recognise that strategies for interaction, new products and services, Low Carbon Consultative Forum in December 2018. or in-home technologies should be integrated. Incorporating xclusive to members, the HyNet is to reduce carbon emissions from E characteristics of the new energy consumer into next-generation Members heard from a number of influential strategies will influence how a provider identifies and approaches Forum provided an speakers including; industry, homes and transport and support new market opportunities and, ultimately, determines its business opportunity for the industry economic growth in the North West of to engage with stakeholders Time for change model. across heating and energy, Mark Wheeldon, SGN, who gave more England. This project is ongoing. He also spoke about HyDeploy, which has gained exemption details on their H100 project, which is The current energy system was built to deliver reliability and low With thanks to Accenture in the compilation of this article. Accenture’s discussing current and future developments, developing a hydrogen grid from first by the HSE from the GSMR to enable them to cost above all else, and energy providers have typically done well multiyear New Energy Consumer research looks at emerging trends in facilitating a unified and co-ordinated principals rather than re-purposing the blend up to 20 per cent hydrogen into the in meeting those objectives. Historically, most have emphasized energy and identifies new challenges and opportunities for the approach to discussions. existing natural gas grid. This work is Keele University network. Cadent are busy the supply side of their business—offering standard customer evolving energy marketplace. progressing well and will give the networks a obtaining the electrolyser and blending service options and basic “fringe programs” for energy efficiency. Mike Foster,Chief Executive, EUA said: better insight to the challenges of equipment to be ready for the third stage of To find out more visit their website www.accenture.com/gb-en/insight- transporting and distributing hydrogen. the project which is the live operation of a large Energy providers have not historically been designed to provide utilities-new-energy-consumer-2017 section of the network, starting next summer. differentiated customer service or to support innovative energy- Dr Charlie Dunnill, Swansea University gave a efficiency programs at scale to the mass residential market. But this well-reasoned structure fails to work in a digitalised and decentralised world. “ ‘ There are a number of projects being undertaken across the presentation on using hydrogen to generate electricity as well as producing hydrogen from electricity, both using types of Oujen Hodjati-Pugh from The University of Birmingham presented on the work they are doing on solid oxide fuel cells and the industry all aimed at reducing the carbon electrolysers. As a simple demonstration difference between low temperature and high On the demand side, consumers also have been passive in their emissions of gas – from biomethane they brought along a bicycle which had temperature versions. Fuel cells are a realistic interaction with energy providers. Viewing energy as a basic injection to full scale hydrogen conversion. a generator on the back wheel that option going forward and the use of materials service, they maintain a “low-value” relationship with their energy produced electricity and then using an other than expensive platinum seems to be Our members are leading the way through providers. Typical consumers interact with their providers just a electrolyser, produced hydrogen. increasing, which should help in reducing few times each year. Research shows that the fundamental innovation, and recognition that in order to costs. Some members had a go at relationship between the consumer and energy provider has decarbonise heat affordably and without producing hydrogen bubbles. evolved at a very slow pace. the need for homeowners to change The final presentation was from Martin Sperrink, Northern Gas Networks on the H21 their heating systems, the UK must Andy Lewis, Cadent gave an update on Helping consumers manage and optimise their energy usage project which is gathering pace and more green the gas in the grid.” HyNet, a hydrogen energy and Carbon requires a new kind of relationship between the energy provider detailed planning is underway. Capture, Usage and Storage (CCUS) project and consumer. Take the UK smart metering programme. This ” H yd ro g en in the North West of England. The goal of fo Keep a look out for details of the next Forum depends on significant levels of consumer participation and a lo w ca rb r on which will be communicated soon. success hinges on scalable consumer adoption. This presents fu tu re several unique challenges. Simply installing smart metering devices and in-home displays will not drive lasting consumer adoption. Energy providers must develop a more H1 comprehensive competence in consumer energy support to tailor products and service channels accordingly. Successful energy providers that understand and leverage consumers’ perceptions, behaviours and values are the ones that will ultimately generate the most value and achieve high performance in the new energy era. Energy policy and regulation has also been built around the historical structure of the energy sector - gas or electricity, supply or demand, efficiency or low carbon, renewables or fossil fuels. However, customers think differently. They think in term of warmth, mobility and power. A warm home or workplace is a result of both building efficiency and the heating system, and the 18 19
L E A D I N G V O I C E : L I V H O V E M Leading people voice personal performance comment strategy words times growth opinion view vision background feedback business speak point In this issue we talk to Liv HovemCEO of DNV GL – Oil & Gas iv Hovem is CEO of remain in pole position in the lead-up to mid- Our role is to help our customers prepare for the L automation, energy efficiency, electrification and DNV GL – Oil & Gas, carbon capture - these technologies are causing century. transition and to remove technical obstacles to the growth of gas. which is a global rapid changes for oil and gas companies and their suppliers, so there’s always something new and Oil and gas operations will become faster, leaner technical advisor working in partnership interesting. and cleaner towards mid-century, as gas fuels the What should companies do to begin with operators, suppliers, An important part of my role now is to help energy transition. their own transition and plan? About DNV GL governments and industry customers navigate the energy transition and to Significant investment will be needed in gas over The attention of boardrooms and cabinets should DNV GL is a global quality assurance and risk management company providing classification, associations to support progress help the industry collaborate and build the trust the coming decades to increase capacity, be fixed on the dramatic energy transition that is technical assurance, software and independent expert advisory services to the maritime, oil and across the entire gas value chain. needed to adapt to digital advances. transform assets and transport a decarbonised unfolding. In 2017, more gigawatts of renewable gas, power and renewables industries, as well as within management system certification services, mix of energies. energy were added than those from fossil fuels and digital assurance and digital solutions across industries. We have operations in more than 100 Career to date/working in this What’s been the most important this is reflected in where lenders are putting their countries. lesson learned? There are some regulatory challenges to the money. sector market position of gas — such as carbon pricing, DNV GL Group AS is 100 per cent owned by a free-standing, independent Norwegian foundation I studied Civil Engineering at NTNU, and then We cannot work in separate silos anymore. The DNV GL’s recently published research ‘A test of emission caps, and pollution regulation — which whose long-lasting purpose is to safeguard life, property and the environment. went to the University of California, Berkeley for technological leaps mean industries that were resilience: the outlook for the oil & gas industry’, could pose risks to the future share of gas in the an MSc in naval architecture and offshore previously separate have to work more closely based on a survey of nearly 800 senior oil and gas global power generation mix. Around 5 per cent of DNV GL’s annual revenue is invested into research and development. 60 engineering. together and learn from each other. We have to professionals showed that half (51 per cent) of senior per cent of the research and innovation activities are dedicated to digitalisation. We also drive think differently about collaboration and system industry professionals will focus on actively adapting integration; it is critical to achieve our (climate) goals. How is DNV GL responding to the more than 100 joint industry projects (JIPs) in our industries annually, more than any other Prior to becoming CEO of DNV GL – Oil & Gas, I to a less carbon-intensive energy mix in 2019, up organisation, adding to our openly-accessible library of more than 170 industry standards, energy transition and the pace of from 44 per cent last year. While momentum for was head of Continental Europe, the Middle recommended practices and technologies to advance safety and efficiency in a broad range of East and India at DNV GL – Oil & Gas, DNV GL’s 2018 Energy Transition change that is being experienced? long-term decarbonisation is building, DNV GL’s technologies. headquartered in Milan. I have also worked in Outlook shows major implications Not long ago, the industry regarded the energy research indicates that companies today are more the Maritime sector for many years. for all industries. Can you share transition as a transformation on the horizon, likely to be doing so because they are told to, rather The company operates 14 laboratories across three continents, combining advanced testing with some of the key trends emerging however it has become clear that this significant than because they want to. technical expertise and industry standards to help customers apply technology safely, efficiently It was never the plan to stay at DNV GL for 30 change is already upon us and it is influencing for our readers and outline how this Regulation topped the list of factors most likely to and cost effectively. years, but I have been given so many the entire oil and gas value chain. DNV GL serves opportunities. will impact the gas industry both the renewables and oil and gas industries. drive oil and gas companies to decarbonise their In the oil and gas industry DNV GL has been involved in developing game-changing Our Energy Transition Outlook (ETO) forecasts that For us, and for many of our customers, the operations in 2019. The energy transition and ‘doing technologies such as the intelligent pig, polyethylene piping and the condensing boiler. There are so many fascinating things going on natural gas will rapidly overtake oil to become the energy transition itself is the greatest source of the right thing for society’ came in ninth and tenth in the industry right now: digitalisation, world’s primary energy source in 2026. It will then risk – and opportunity. place, respectively. 20 21
You can also read