ENERGY MANAGEMENT & OPTIMISATION Reaching energy resilience U
As UK industry faces unprecedented energy instability, Chris Rason, managing director energy services at Aggreko Europe, is calling for the diversification of on-site energy models to deliver a reliable and cost-effective power supply
K industry has long wrestled with complications around price volatility and consistent supply when powering energy- intensive sites. These concerns come from two major issues – the availability of efficient generator equipment, and an increasingly under- strain National Grid.
The issue of the grid being insufficient to supply for ever-growing national demand is a longstanding one. Two-thirds of UK manufacturers, for instance, were worried of blackouts last winter, particularly as more intermittent renewable power was added to the national energy mix. Similarly, energy watchdog Ofgem has previously branded the decade- long delay to connect new, low-carbon facilities as ‘unacceptable,’ and the National Grid has stated that back-up coal power used over the winter of 2023 would no longer be available for 2024’s colder months. For data centre professionals, this added strain poses problems at a time when global commercial property experts, CBRE are reporting that hyperscales are continuing to show strong interest in expanding their presence in London. Additionally, CBRE also forecasting that the London data centre market will surpass 1GW in operational capacity by the end of 2023, concerns around Amsterdam-style power- based construction moratoriums will only grow. These infrastructure concerns are complemented by the current struggles facing other UK industries. For example, the UK’s Manufacturing Purchasing Managers Index – a key barometer of the sector’s health – was read as 46.5 in June. With any figure below 50 representing an overall country-wide decline,
and this being the 11th straight month of contraction, it is clear it is a challenging time for power-hungry sites, and the buildings services, facility management and energy professionals working within them.
Being seen to go green
The market concerns identified here are further amplified by the need to secure sustainable power. The pressures of the UK reaching Net Zero by 2050 and hitting key legislative benchmarks by 2035 – including a 78% reduction in emissions compared to 1990 levels – continue to mount as time goes on. This is to say nothing of the country’s growing number of low or ultra-low emissions zones (ULEZ), with all London Boroughs affected by ULEZ rules from the end of August 2023. Yet with the Climate Change Committee
recently announcing that the UK is missing climate targets on nearly every front, the building services sector should expect increasingly stringent decarbonisation regulations in the future. A similar situation is unfolding for professionals working in European markets, as EU scientific advisors are urging the bloc to cut 90-95% of emissions by 2040 – bringing forward their previous 2050 climate neutrality target.
Rising demand, finite resources
This presents a problem. Namely, though industry demand for green installations is rising, the number of low-carbon power solutions available remains finite. Alongside this, efficient equipment is more vital than ever, especially with energy prices soaring and the National
Grid planning to import expensive power from abroad after decommissioning back-up coal plants. Warning signs of further volatility are
there, including recent warnings from the International Energy Agency that energy bills will rise this winter due to the possibility of spiking gas prices. Though these forecasts are aimed at the consumer market, this changing situation could potentially impact commercial pricing, further increasing demand for energy- efficient site equipment. The current climate should push plant facility and energy stakeholders to take bold moves to counter energy cost, availability and emissions concerns. However, with the situation continuing to move quickly across these multiple fronts, facility stakeholders run the risk of purchasing installations that may soon become outdated, non-compliant or outperformed by new and innovative power technologies currently under development. Considering industry pressures highlighted by the PMI, this is clearly an inopportune time to become disadvantaged to competitors in the UK and abroad.
Race to resilience
It is with these issues in mind that Aggreko has launched its latest report, the Race to Resilience. The whitepaper explores new approaches to decentralised power across multiple energy-intensive industry sectors, and how new approaches to equipment procurement can help alleviate short- and long- term industry concerns. The report highlights how hiring on-site generation equipment to power sites independently or in tandem with the grid can provide businesses with the autonomy required to maintain consistent power, or upscale when needed. These solutions, including efficient Stage V generators, Battery Energy Storage Systems and other installations fuelled with sustainable hydrotreated vegetable oil (HVO), can also boost resilience while allowing facilities to reduce emissions. Importantly, the report goes on to explore how hiring equipment on a temporary basis means facility stakeholders are not exposed to the possibility of expensive stranded or underspecified assets. In the case of power demand increasing or legislation becoming more stringent, the hired energy model allows for greater modularity and dynamism in equipment procurement, without impacting capex budgets. To give site decision-makers a starting point when identifying such models, the report also highlights a series of calculators developed by Aggreko – these include the Hire Vs Buy, Grid Compare, Data Centre Power Selector and Greener Upgrades calculators. These offer an important initial step in means-testing alternative approaches for power or temperature control.
Making sense of uncertainty
The only certainty about the UK’s energy market in that the future is uncertain. Global trends continue to affect power prices, and closer to home, the country is struggling with decarbonisation and an ageing grid potentially unsuited to modern demands. In the face of such volatility, building services professionals need to take immediate steps to safeguard energy-intensive operations and best mitigate the financial impact these issues could cause.
This is especially the case in facilities where uptime is crucial, such as data centres. Though a future of completely decentralised energy networks is unlikely in the short- to medium- term, hired generator equipment can provide a way to bridge the gap. Integrating these technologies into plant or facility operations can help provide much-needed resilience and avenues to reduce emissions in a fast-moving, uncertain future.
Read the latest at:
www.bsee.co.uk BUILDING SERVICES & ENVIRONMENTAL ENGINEER AUGUST 2023 23
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