your heating bill Event supported by Introductions Housekeeping - - PowerPoint PPT Presentation

How to save energy and reduce your heating bill

Introductions

Housekeeping

• Fire alarms
• Fire exits
• Assembly point
• Toilets
• Mobile phones
• Questions

Workshop aim

To provide you with the skills and tools to:

• Establish your own organisation’s heating energy use
• Identify opportunities for improvement
• Build the business case for measures

Today’s agenda

Why resource efficiency?

What are resources?

Water Energy Raw Materials

A global downturn?

Oil Copper Cotton Soya

23% 68% 18% 16%

Global growth rates

Critical resource are running short

Silver <30 years

Indium <10 years

Zinc <40 years

• Landfill Tax Regulations 1996

– Currently £80/tonne

• Waste (Scotland) Regulations 2012

– paper, card, plastic, glass and metal

• Climate Change (Scotland) Act 2009

– 80% reduction in GHG emissions by 2050

• CRC Energy Efficiency Scheme
• Climate Change Agreements (CCA)

Legal drivers

The benefits of resource efficiency

Water

• Save £2.9 billion each year in Scotland alone
• Reduce energy, water, waste and raw

materials cost

• Help increase competiveness
• Increase job security
• Improve reputation

ScottishPower

Colin McNeill

Could you make a Resource Efficiency Pledge?

Anglo - Eastern (UK) Limited Barr Environmental Ltd BCF Technology Ltd Best Western Kings Manor Hotel Best Western Strathaven Hotel Bunzl Greenham Campion Homes Cornerstone Community Care Devro plc Edinburgh International Conference Centre Edinburgh Leisure First Group Gavin Watson Printers Glasgow Airport Gordon & MacPhail Honeywell Control Systems Ltd JGC Engineering & Technical Services Ltd Lowmac Alloys Ltd Mackays Hotel - Wick Managed IT Experts Ltd National Records of Scotland Network Rail Pro-Tec Security Services Ltd RHI Refractories UK Ltd Ricardo-AEA Scottish Exhibition & Conference Centre Sportscotland

Understanding your current energy use for space heating

Types of heat

What is thermal comfort?

• Different for every person

– Air temperature – Radiant temperature of surfaces – Relative humidity – Air movement – Metabolic heat / Activity level – Clothing – Well being

What are sources of heating?

• People
• Thermal mass
• Insolation
• IT
• Cooling equipment
• Process equipment
• Heating system

Understanding the units

What data should you collect?

• Record kWh and cost from each quarter or monthly bill
• Collect at least 1 year of data, preferably 3 years
• Estimate that around 10% of heating will be used for hot water

Worked Example

• Average gas cost for last 3 years is £6,300

– how many kWh of gas is being used if last bill says the unit rate is £0.04?

• Answer gas kWh

= [gas cost £]/[unit cost in £/kWh] = £6,300/£0.04 = 157,500 kWh

Worked example

• We know that 5 x 2kW electric bar fires are also

being used as supplementary heating for 8 hours on 100 days per year.

• How much is this costing compared to the gas?

The unit rate for electricity is £0.12/kWh Answer: kWh of electricity = 10kW x 8 x 100 hours = 8000kWh Answer: Cost of electricity = 8000kWh x £0.12/kWh = £960

What about electric heating?

• Some buildings will use direct resistive heating

either for direct panel heaters or air-conditioning units

• If you only have one electricity bill then you can

make a quick estimate that 50% of electricity is used for heating and 50% is used for all other electricity needs

• Some electrically heated sites will have a separate

circuit supply storage heaters on a cheaper rate.

Smart Metering

• Smart metering is due for all

SMEs between 2015 and 2020

• Many already have ‘Advanced

Meters’ which provide daily

• r hourly data
• A smart metering trial found

that giving organisations good data resulted in a 5% reduction with no other input (Carbon Trust Smart Metering Trial 2007)

Benchmarking

• To allow comparison between buildings it is useful

to compare kWh/m2/year (kilowatt-hours per square meter per year)

• So for a 20m x 50m factory = 1000m2
• Considering the previous example with

157,500kWh

• Consumption per m2 = 157,500/1000 =

157.5kWh/m2/year

Benchmarks for Heating (CIBSE TM46)

Building type Fossil-thermal typical benchmark kWh/m2/year General office 120 Large non food shop 170 Bar, pub 350 Hotel 330 Workshop 180 Fitness and Health Centre 440 Storage Facility 150

Use benchmarks to...

• Understand your current space heating costs
• Set targets for reduction
• Estimate savings potential
• Discuss options with senior management
• [Larger organisations should consider degree-day

benchmarks]

Exercise 1

Exercise 1 (20 minutes)

You work for a small manufacturer. Your site has two buildings: an

• ffice heated with electric storage heaters; and a gas-heated

engineering workshop. You want to reduce your space heating bill. Based on the information below, which building would you say has the greatest savings potential?

Key information:

General office

Electricity cost Y1: £3,450 Electricity cost Y2: £3,250 Electricity cost Y3: £3,400 Unit cost: £0.08/kWh Office size: 200m2

Workshop

Gas cost Y1: £4,500 Gas cost Y2: £4,900 Gas cost Y3: £4,700 Unit cost: £0.04/kWh Workshop size: 600m2

Benchmarks for Heating (CIBSE TM46)

Building type Fossil-thermal tpical benchmark kWh/m2/year General office 120 Large non food shop 170 Bar, pub 350 Hotel 330 Workshop 180 Fitness and Health Centre 440 Storage Facility 150

Helpful Hints

• Step 1 – Find the average energy bill for the last 3 years
• Step 2 – Find the kWh usage

– Either read from bill (data not presented in example) or calculate from cost – Energy [kWh]= Cost [£] / Unit cost [£/kWh] – Take off an estimated % for non-heating use.

• Step 3 – Find the kWh per square meter

– Energy per square meter [kWh/m2] = Energy [kWh] / Area of premises [m2]

• Step 4 – Compare Energy per square meter with bench marks
• Step 5 – What is your conclusion about where savings could be made?

Heating distribution and control

What do we mean by heat distribution?

• The system that delivers heat from source to

point of use

• Usually ‘wet system’ with radiators
• Or air source heat pump
• Offers good potential for savings

Via improved controls

Typical heating controls

• Time clocks
• System thermostat
• Zone controls
• Localised thermostats such as

thermostatic radiator valves (TRVs)

Tips for improving your heating system

• Switch your heating off early

– Many buildings store heat effectively – People and IT can maintain the building temperature from mid-afternoon – Try moving your switch off time back an hour

• Consider hot-desking

– Heat from occupants is concentrated in one area – Switch off heating earlier in un-occupied areas

• Make sure colleagues understand controls

Types of controller

• Time clock

– Set start and finish times each day

• 7 day timer

– Set for earlier start on Monday morning

• Optimised heating controller

– Uses inside and outside temperature sensors – Learns your building heat up time for different temperatures – Switches on as late as possible

Tips for improving your heating system

• Insulate pipework

– In plant rooms (easy fix velcro attachments are available for awkward flanges and bends) – Consider insulating distribution pipework if it does not contribute useful heat

• Keep space around space heaters free

– Avoid files, desks and furniture up against heaters – Leave 15cm between radiators and furniture

• Record your heating system settings

– Use a simple record sheet to record date and change made – Put dates in the diary (clock changes), Xmas holidays to change settings as needed

Tips for improving your heating system

• Set appropriate temperatures

– Office / low activity 20°C – Workshop / high activity 16-18°C – Turning down setpoint by 1°C could save circa 8%

• Locate thermostats carefully

– Not near doors – Not in sun

Control Heat gains

• In shops

– Large heat gains from display lighting and refrigeration

• In offices

– From occupants and electrical equipment

• In factories

– From processes such as cooking, welding

• In many lightweight buildings

– Solar gains through thin walls and glazing

De-stratification fans

• Useful for high ceiling premises

with a large variation in temperature with height and a reasonably well insulated and air tight building

Tips for improving your heating system

• Interlocked heating controls
• Fast opening roller-shutter doors
• Air curtains
• Flexible doors

Heat Pumps

• Air Source – coefficient of performance to 2 to 3
• Ground Source – coefficient of perf of 3 to 5
• Move heat rather than create it

Warm air distribution systems

• May be HVAC system with gas boiler or ASHP

– Some HVAC systems can be adapted to make use of free cooling (cold outside air) and excess heat internal to the buildings (e.g. server rooms) – Consult a specialist

• Consider VSDs (Variable Speed Drives) for HVAC and

circulation pumps

• Ensure a dead band of 4 degrees C is set between

heating and cooling

Boiler replacement and fuel switching

Boiler replacement and fuel switching

• Understanding boiler efficiency
• Knowing when to upgrade your boiler
• Fuel switching and renewable heat incentive (RHI)

Boiler Efficiencies

• Many SMEs use smaller domestic style boilers
• Check your boiler’s efficiency at www.ncm-

pcdb.org.uk

• All new boilers have to be A-rated (>90%

efficient)

• Any boilers pre 1997 are likely to be inefficient

– consider replacing

Condensing Boilers

• Have the highest efficiencies (>92%)
• Recover extra heat from flue gases
• Operate at lower flow temperatures (may need larger

radiators)

• Need careful installation in order to make sure they

can operate in condensing mode

• Need a condensate drain

Understanding boiler efficiency

• What do we mean by boiler efficiency?

(The % of input energy (fuel) that is

• utput as useful heat)
• What is a good/bad efficiency rating?

Knowing when to upgrade your boiler

• How efficient is my boiler?
• Age?
• Condition? Maintenance Costs?
• Specialist analysis

Fuel switching

• Consider switching if you are using a high price fuel

such as oil (but has reduced recently), LPG or electricity (day tariff).

• Alternatives are
• Natural gas / Biomass
• Air source heat pumps (ASHP), air-to-water only
• Ground source heat pumps (GSHP)

Renewable Heat Incentive

• Government funded subsidy for renewable heat

projects

• Paid quarterly per kWh of heat produced
• Rate fixed at commissioning and then paid for 20

years (index linked)

• Helps pay for higher costs of renewable equipment
• Typical paybacks around 8-12 years

Hotel : Oil to Biomass conversion

Installation of biomass boiler without RHI: Cost of system = £110,000 Fuel saving = £5380 (£14,620 oil - £9,240 wood pellets) Payback = 20 years (£110,000/£5,380) Installation of biomass boiler with RHI: Cost of system = £110,000 Fuel saving = £5380 (£14,620 oil - £9,240 wood pellets) RHI (6.8p/kWh heat generated) = £11,615 (170,820 kWh X 6.8p) Payback period = 6.4 years (£110,000/(£5,380+£11,615)

Radiant Heat

• Heat

surfaces not space

Underfloor Heating

Exercise 2

Exercise 2 (15 minutes)

Your organisation has a gas boiler that was installed in 1990. Your gas engineer estimates your boiler’s efficiency at 70%. The engineer recommends upgrading to a gas condensing boiler with an efficiency of 92%, at a cost of £10k.

• How much energy and money would you save each year if you

upgraded?

• How many years would it take to for the investment to be repaid?

Key information:

Gas costs: £0.04/kWh Current annual gas consumption: 150,000 kWh

Exercise 2 - Hints

• Step 1 – Calculate current gas annual cost

– Annual cost [£] = Annual gas consumption [kWh] x Unit Cost [£/kWh]

• Step 2 – Calculate the current annual heating demand

– Annual heat demand = annual gas consumption [kWh] * Boiler Efficiency

• Step 3 – Calculate the new boiler consumption

– New Annual consumption [kWh] = Annual heat demand [kWh] / New Boiler Efficiency

• Step 4 Calculate the gas kWh saving, cost saving and

payback

Green Network for Businesses

Green Network for Businesses

• pportunity

• Waste, water, energy and resource

efficiency

• More than 140 members and

growing

• Covers a range of industry sectors
• Lead by example and share best

practise

Business events – be inspired

Tuesday 3 March

• Visit the Athletes' Village - built for Glasgow's

Commonwealth Games 2014; followed by The Glasgow House, a pioneering project to design affordable homes with lower energy demands.

• Visit Glasgow Recycling and Renewable

Energy Centre - innovative recycling facility, with waste to heat energy production, that enables district heating; followed by Ibroxholm Oval, a progressive, energy efficient apartment complex from Lowther Homes.

Heating technology showcase - Saturday 14 March, Fintry

• Wood-fuelled heating (wood chip/pellet boilers)
• Insulation measures and LED lighting
• Heat pumps

Website for Green Network for Businesses

• Searchable map by business

type, sector, technology and measures

• www.resourceefficientscotland.co

m/green-network-businesses

• Or contact us directly on

businessnetwork@resourceeffice ntscotland.com

TURNING WASTE INTO PROFIT

Forrester Adam Managing Director

OVERVIEW

• Established 1945
• 24,000sq ft premises in Glenrothes

Our services

• Bespoke staircases
• Luxury Handrails
• Specialist Timber Machining
• Specialist Woodturners

OUR CHALLENGE

• Massive amount of wood waste
• 40 Yard Skip – filled every fortnight
• Costing £9,000 per annum and rising
• Gas bill in excess of £4000 per annum

and rising

• Annual heating maintenance of £1-2000

OFFCUT SALES

• One Man’s Trash is Another’s Treasure
• Monthly offcut sale
• Managed by retired Clerk of Works
• Highly sought after by amateur and

professional wood turners

• Club mentality
• Charity focus

OUR SOLUTION

• 2 x WT15 hand-fired wood heater unit
• Shredder
• Briquette making machine
• Total investment £42,500
• Resource Efficient Scotland

Interest Free loan

OUR RESULTS

• Waste bill reduced to zero
• Gas bill reduced by 75%
• Zero maintenance
• Offcut sales generating £12,000 Gross

Profit per annum

• On target to sell £2,000 of briquettes in

first year

THANK YOU

Any Questions

Find us online at www.haldaneuk.com @haldaneuk

Thermal efficiency

Thermal efficiency

• Reduce uncontrolled air leakage
• Improve the thermal performance
• f building fabric

Reduce uncontrolled air leakage

• Doors
• Windows
• Other draughts
• Check ventilation levels

are correct for current activities

Reduce uncontrolled air leakage

• Consider LEV (local extract ventilation) for

dusty or fume filled environments to reduce heat losses

Consider mechanical heat recovery

• Air-to-Air heat exchangers can save up to

50% of heating consumption

Improve the thermal performance

• f building fabric
• Roof
• Walls
• Windows
• Floors

Improve the thermal performance

• f building fabric
• Loft insulation
• Under roof insulation
• Beware of asbestos

Improve the thermal performance

• f building fabric
• Cavity wall insulation
• Check condition of wall

for exposed locations

Making a business case

Two questions from your finance department/boss/MD: 1.How much is all this going to cost us? 2.When do we get our money back? And the other questions they should be asking:

• 1. Any other H&S considerations
• 2. Any other benefits?

Building the business case

• 1. How much is all this going to cost us?

a) Rough estimate – pricebooks on the internet, SPONS b) Resource Efficient Scotland or specialist survey c) Quotes from contractors or suppliers. Resource Efficient Scotland can help you to review quotes and any assumptions made

Building the business case

PAYBACK INTERNAL RATE OF RETURN NET PRESENT VALUE

• 2. When do we get our money back?

Building the business case

Building the business case: payback

Simple Payback Period:

• The amount of time in years that it takes for an investment to

be repaid by the savings it achieves

• Ignores maintenance costs
• Ignores savings through improved longevity (as long as the

payback period is less than the expected life of the equipment)

Building the business case: Net Present Value

Net Present Value:

• Better for large investment or longer term projects
• Sums the cash flows in each year
• Discounts the value of money in the future

= X Years

Building the business case: payback

Building the business case: Net Present Value

• Useful for large investments

and/or long payback periods

• Useful for comparing

projects with different lifetimes

• Choose the number of years

that you evaluate a project

• ver

• 6000

• 6000

NPV

• £7,000
• £6,000
• £5,000
• £4,000
• £3,000
• £2,000
• £1,000

Discounted Cashflow

Building the business case: worked example

Replace gas boiler for a single-shift factory 50 wks/yr 5 days/wk

• Rationale
• Description of the measure
• Costs including quotes
• Payback or NPV
• Any other benefits
• Any H&S considerations

Building the business case: summary

Get funding

• Advice and support on 0808 808 2268
• New Guide

‘Sources of finance - How to fund your resource efficiency Projects’

Q&A and Next steps

Q & A

Advice and support

We provide free, specialist advice and one-to-one support to help decision makers in business, public and third-sector

• rganisations cut their energy, water and raw material

costs

0800 808 2268

www.resourceefficientscotland.com

• Free online training for your

environmental team

• Bite sized modules teach latest resource

efficiency knowledge and practice

• Certificate on completion
• Ideal lunchtime learning

E-LEARNING Green Champions Training

• wn pace. I highly recommend this

The Resource Efficiency Pledge

Helping your business to plan, inspire and take action, so that you can reap the benefits of improved resource efficiency.

motivate your staff and senior management, and bolster their commitment to achieving your business’s environmental goals focus your efforts on a clear set of achievable performance improvement actions get the recognition you deserve from employees, customers and wider stakeholders

VIBES Objectives

• Encourage improved environmental performance
• Enhance the competitiveness of organisations
• Support the wider goals of sustainable development

VIBES Partners and Supporters

VIBES 2014 Sponsors

Award Categories

• Management
• Large business category (250+ employees)
• SME business category (<250 employees)
• Environmental Product or Service
• Hydro Nation Award
• Circular Economy
• Transport
• Co-operation
• Best Micro Business

Why Apply?

Timescales

• Applications open on 7th May 2015
• Applications close mid July 2015
• Finalists identified end August
• Site visits September/October
• Winners announced at award ceremony in November

in Edinburgh

More Information

Before you go…

• Next steps forms
• Feedback forms
• Return badges

Thank you

www.resourceefficientscotland.com 0808 808 2268 | @ResourceScot